A job has labor of $46,250, materials of $39,500, and subcontract cost of $18,750. What is total direct cost?
Correct Answer
B) $104,500.
Total direct cost is labor plus materials plus subcontract cost: $46,250 + $39,500 + $18,750 = $104,500.
Why This Is the Correct Answer
Total direct cost is labor plus materials plus subcontract cost: $46,250 + $39,500 + $18,750 = $104,500.
Why the Other Options Are Wrong
Option A: $85,750.
$85,750. is below the supported result for direct job cost; it likely uses the wrong base, period, or account bucket.
Option C: $64,000.
$64,000. is below the supported result for direct job cost; it likely uses the wrong base, period, or account bucket.
Option D: $123,250.
$123,250. is above the supported result for direct job cost; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Direct Job Cost drawer for Totaling Costs: label labor before counting dollars.
Reference Hint
Study anchor (closed-book): memorize Direct job cost from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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