A Punta Gorda field change uses $1,960 labor, $880 material, and $325 equipment, plus 10.0% field overhead. What trade cost should be carried?
Correct Answer
A) $3,481.50
Trade change cost includes direct costs plus field overhead percentage.
Why This Is the Correct Answer
Trade change cost includes direct costs plus field overhead percentage.
Why the Other Options Are Wrong
Option B: $3,165.00
$3,165.00 is below the supported result for field change trade cost; it likely uses the wrong base, period, or account bucket.
Option C: $316.50
$316.50 is below the supported result for field change trade cost; it likely uses the wrong base, period, or account bucket.
Option D: $4,361.50
$4,361.50 is above the supported result for field change trade cost; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Manager Prices money test: bucket before math for field change trade.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Job cost records and field-change cost buildup; verify the trade cost, production, or field-control rule before answering.
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