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Field indirect costs include $58,900 supervision, $21,600 temporary utilities, and $14,750 field office costs. What general conditions total is budgeted?

Correct Answer

D) $95,250

The listed general conditions items add to $95,250.

Answer Options
A
$82,500
B
$88,250
C
$90,500
D
$95,250

Why This Is the Correct Answer

The listed general conditions items add to $95,250.

Why the Other Options Are Wrong

Option A: $82,500

$82,500 is below the supported result for general conditions subtotal; it likely uses the wrong base, period, or account bucket.

Option B: $88,250

$88,250 is below the supported result for general conditions subtotal; it likely uses the wrong base, period, or account bucket.

Option C: $90,500

$90,500 is below the supported result for general conditions subtotal; it likely uses the wrong base, period, or account bucket.

Memory Technique

Estimator Summarizes money test: bucket before math for general.

Reference Hint

Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Accounting for Costs and Expenses, Accounting for Overhead; use the job ledger figures in the stem and recompute the same accounting measure.

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