A Plant City trade estimate carries a small-tools allowance of 3.0% of direct labor. Direct labor is $18,400. What allowance should be included?
Correct Answer
B) $552.00
Small-tools allowance equals direct labor multiplied by the allowance percentage.
Why This Is the Correct Answer
Small-tools allowance equals direct labor multiplied by the allowance percentage.
Why the Other Options Are Wrong
Option A: $18,952.00
$18,952.00 is above the supported result for small-tools allowance; it likely adds scope or money the rule does not allow.
Option C: $55,200.00
$55,200.00 is above the supported result for small-tools allowance; it likely adds scope or money the rule does not allow.
Option D: $276.00
$276.00 is below the supported result for small-tools allowance; it likely omits part of the approved scope, cap, credit, or holdback.
Memory Technique
Estimator Checks contract math: approved scope is the ruler for small-tools.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Contractor's Manual, Trade estimating and small-tools allowances; verify the trade cost, production, or field-control rule before answering.
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