A Palm Harbor equipment log reports 210 gallons of fuel at $4.05 per gallon. What fuel cost should be charged?
Correct Answer
D) $850.50
Fuel cost equals gallons used multiplied by price per gallon.
Why This Is the Correct Answer
Fuel cost equals gallons used multiplied by price per gallon.
Why the Other Options Are Wrong
Option A: $214.05
$214.05 is below the supported result for equipment fuel cost; it likely omits allowance, conversion, coverage, or final round-up.
Option B: $51.85
$51.85 is below the supported result for equipment fuel cost; it likely omits allowance, conversion, coverage, or final round-up.
Option C: $950.50
$950.50 is above the supported result for equipment fuel cost; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Memory Technique
Equipment Fuel Cost cart for Clerk Posts: gallons first, multiplied second, whole units last.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Equipment operating costs and job cost coding; verify the trade cost, production, or field-control rule before answering.
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