A force-account record allows equipment standby at 50 percent of the $740/day operating rate. The machine is on standby for 3 days. What standby amount is supported?
Correct Answer
C) $1,110
Standby rate is $740 x 50% = $370/day. For 3 days, standby amount is 3 x $370 = $1,110. Other choices use two days, full operating rate, or one standby day.
Why This Is the Correct Answer
Standby rate is $740 x 50% = $370/day. For 3 days, standby amount is 3 x $370 = $1,110. Other choices use two days, full operating rate, or one standby day.
Why the Other Options Are Wrong
Option A: $370
equipment standby rate, choice a: the answer choice lifts $370 from the working line Standby rate is 740 x 50% = 370/day.
Option B: $1,480
equipment standby rate, choice b: the number $1,480 comes from $740 / 50 percent.
Option D: $2,220
equipment standby rate, choice c: $2,220 equals $740 x 3. That multiplies those two listed numbers.
Memory Technique
Keep a cover note beside equipment standby rate: if one number is skipped, the option drifts away from $1,110.
Reference Hint
Open Construction Jobsite Management, 5th Ed.; use the index entry or section for "Force-account equipment standby" to confirm that Standby rate is $740 x 50% = $370/day.
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