An owner-operator has a $22,000 contract, $8,500 materials, $6,200 subcontract cost, and $2,300 overhead. What estimated own-labor amount remains?
Correct Answer
A) $5,000.
Estimated own-labor amount is $22,000 - $8,500 - $6,200 - $2,300 = $5,000.
Why This Is the Correct Answer
Estimated own-labor amount is $22,000 - $8,500 - $6,200 - $2,300 = $5,000.
Why the Other Options Are Wrong
Option B: $6,200.
$6,200. is above the supported result for owner-operator payroll; it likely pays the wrong premium tier or counts the same hours twice.
Option C: $7,000.
$7,000. is above the supported result for owner-operator payroll; it likely pays the wrong premium tier or counts the same hours twice.
Option D: $13,500.
$13,500. is above the supported result for owner-operator payroll; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Owner-Operator Payroll ladder for Estimating Labor: hours climb before dollars add up.
Reference Hint
Study anchor (closed-book): memorize Owner-operator payroll from California Labor Code Sections 1771.4 and 1776; DIR certified payroll. / DIR CPR FAQ owner-operator labor calculation; know the rule or calculation trigger without relying on exam-room lookup.
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