Direct labor for a concrete phase is $74,000 and direct material is $112,500. What combined direct cost is posted?
Correct Answer
B) $186,500
Direct labor and direct material together total $186,500.
Why This Is the Correct Answer
Direct labor and direct material together total $186,500.
Why the Other Options Are Wrong
Option A: $176,500
$176,500 is below the supported result for direct cost subtotal; it likely uses the wrong base, period, or account bucket.
Option C: $196,500
$196,500 is above the supported result for direct cost subtotal; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $204,000
$204,000 is above the supported result for direct cost subtotal; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Accountant Checks money test: bucket before math for direct cost subtotal.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Cost and Expense Records, Objectives of the Cost System and Cost Allocation; use the job ledger figures in the stem and recompute the same accounting measure.
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