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Law & BusinessContractsmedium23% of exam part

In the ADU conversion file, a time-and-material change uses 23 labor hours at $86 per hour plus $740 in materials. What total should be shown before other agreed charges?

Correct Answer

D) $2,718.

Labor is 23 x $86 = $1,978. Adding $740 in materials gives $2,718.

Answer Options
A
$1,978.
B
$2,320.
C
$2,522.
D
$2,718.

Why This Is the Correct Answer

Labor is 23 x $86 = $1,978. Adding $740 in materials gives $2,718.

Why the Other Options Are Wrong

Option A: $1,978.

$1,978. is below the supported result for t&m change calculation; it likely skips a premium-pay or employer-cost component.

Option B: $2,320.

$2,320. is below the supported result for t&m change calculation; it likely skips a premium-pay or employer-cost component.

Option C: $2,522.

$2,522. is below the supported result for t&m change calculation; it likely skips a premium-pay or employer-cost component.

Memory Technique

Checking Backup payroll: time, premium, reimbursement, proof in separate buckets.

Reference Hint

Study anchor (closed-book): memorize T&M change calculation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.

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