A field change log shows this condition: a $114,000 allowance is reconciled to $137,300 actual cost. Before markup, what additive adjustment is due?
Correct Answer
B) $23,300
The calculation gives $23,300 for the stated allowance add. Other choices: the distractors come from omitting an adjustment, using the wrong rate, or applying a rounded shortcut for calculation item 268.
Why This Is the Correct Answer
The calculation gives $23,300 for the stated allowance add.
Why the Other Options Are Wrong
Option A: $20,970
allowance add, choice a: $20,970 takes one allowance-side amount as the adjustment.
Option C: $25,630
allowance add, choice c: $25,630 takes one allowance-side amount as the adjustment.
Option D: $29,125
allowance add, choice d: $29,125 takes one allowance-side amount as the adjustment.
Memory Technique
Remember allowance add as "base, adjustment, final unit"; the last unit should read $23,300.
Reference Hint
Open Construction Project Management, 5th Ed. (2022); use the index entry or section for "allowance add calculation" to confirm that The calculation gives $23,300 for the stated allowance add.
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