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.
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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