A Ocoee trade backcharge includes $1,250 cleanup, $2,840 repair, and $310 documentation cost. What backcharge amount should be posted?
Correct Answer
D) $4,400
Backcharge amount includes all listed cleanup, repair, and documentation costs.
Why This Is the Correct Answer
Backcharge amount includes all listed cleanup, repair, and documentation costs.
Why the Other Options Are Wrong
Option A: $4,090
$4,090 is below the supported result for trade backcharge amount; it likely omits allowance, conversion, coverage, or final round-up.
Option B: $3,150
$3,150 is below the supported result for trade backcharge amount; it likely omits allowance, conversion, coverage, or final round-up.
Option C: $7,240
$7,240 is above the supported result for trade backcharge amount; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Memory Technique
Measure to includes, adjust for all, then let Accountant Records set the finish line.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Backcharges and job cost records; verify the trade cost, production, or field-control rule before answering.
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