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A payment reviewer tests the arithmetic: a $194,000 allowance is reconciled to $233,300 actual cost. Before markup, what additive adjustment is due?

Correct Answer

B) $39,300

The calculation gives $39,300 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 348.

Answer Options
A
$35,370
B
$39,300
C
$43,230
D
$49,125

Why This Is the Correct Answer

The calculation gives $39,300 for the stated allowance add.

Why the Other Options Are Wrong

Option A: $35,370

allowance add, choice a: $35,370 is wrong because $35,370 takes one allowance-side amount as the adjustment.

Option C: $43,230

allowance add, choice c: $43,230 takes one allowance-side amount as the adjustment.

Option D: $49,125

allowance add, choice d: $49,125 is wrong because $49,125 takes one allowance-side amount as the adjustment.

Memory Technique

Remember allowance add as "base, adjustment, final unit"; the last unit should read $39,300.

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 $39,300 for the stated allowance add.

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