A Wimauma trade backcharge includes $2,100 cleanup, $3,360 repair, and $475 documentation cost. What backcharge amount should be posted?
Correct Answer
B) $5,935
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: $5,460
$5,460 is below the supported result for trade backcharge amount; it likely omits allowance, conversion, coverage, or final round-up.
Option C: $3,835
$3,835 is below the supported result for trade backcharge amount; it likely omits allowance, conversion, coverage, or final round-up.
Option D: $9,295
$9,295 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.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?