A Osprey crane is down for 6 hours at an idle cost of $185 per hour. What downtime cost should be recorded?
Correct Answer
B) $1,110
Downtime cost equals idle hours multiplied by hourly idle cost.
Why This Is the Correct Answer
Downtime cost equals idle hours multiplied by hourly idle cost.
Why the Other Options Are Wrong
Option A: $191
$191 is below the supported result for equipment downtime cost; it likely skips a premium-pay or employer-cost component.
Option C: $1,295
$1,295 is above the supported result for equipment downtime cost; it likely pays the wrong premium tier or counts the same hours twice.
Option D: $555
$555 is below the supported result for equipment downtime cost; it likely skips a premium-pay or employer-cost component.
Memory Technique
Manager Records payroll: time, premium, reimbursement, proof in separate buckets.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Equipment idle cost and job cost records; verify the trade cost, production, or field-control rule before answering.
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