A Orlando job rents a lift for 5 days at $640 per day plus $350 delivery. What equipment rental cost should be coded?
Correct Answer
B) $3,550
Rental cost equals daily rent multiplied by days plus delivery.
Why This Is the Correct Answer
Rental cost equals daily rent multiplied by days plus delivery.
Why the Other Options Are Wrong
Option A: $3,200
$3,200 is below the supported result for equipment rental cost; it likely drops a required step.
Option C: $990
$990 is below the supported result for equipment rental cost; it likely drops a required step.
Option D: $4,190
$4,190 is above the supported result for equipment rental cost; it likely adds a step the rule does not support.
Memory Technique
Clerk Codes takeoff: count the condition before counting the package.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Equipment cost coding and job cost records; verify the trade cost, production, or field-control rule before answering.
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