VIRGINIA CONTRACTORS STUDY - A &
B LICENSE (CALCULATION PART) 100%
CORRECT
The owner requests changes which will cost the contractor $2,500 in labor and
materials and $700 in overhead costs. With the change, the contractor would be
relieved of $1,000 in labor costs and $280 in overhead costs from the original contract.
The original bid included profit of 10% of all costs. The contractor wants to make a profit
of 10% of all costs on the changes. The amount of the change order should included a
request of an additional.
A. $1820
B. $2,112
C. $3,200
D. $3,520 - ANSWER-B. $2,112
A lump sum contract on a project has a total contract price of $200,000. Retainage has
been held back at 10%. The contractor has received progress payments of 90% of the
project. The contractor submits a request for the final payment for the now completed
project. The final payment amount should be for
A. less than 25,000$
b. between 25,000$ & 35,000$
c. between 35,000$ & 40,000$
d. more than 40,000$ - ANSWER-c. between 35,000$ & 40,000$
A contractor agrees to unit price contract to Product A fir $50 per unit, product B for $50
per unit, and product C for $375 per unit. The contractor is also to add 30% for
overhead and profit. How much the contractor should be paid for producing 27 units of
product A, 56 units of product B and 78 units of product C?
a. less than 40,000$
b. between 40,000$ & 45,000$
c. between 45,000 & 50,000$
d. more than 50,000$ - ANSWER-b. between 40,000$ & 45,000$
A contract calls for liquidated damage of 500$ per day. The project completed five days
late because it was delayed by rain. The completion would have been 10 days earlier if
it were not for the rain delay. There was a 500$ bonus per day for the contractor early A
, firm has current assets of 68,000, fixed assets of 162,000, current liabilities of 45,000,
long term liabilities of 72,000. The firm 's financial position would be considered to be
a. adequate for taking on a major project
b. sufficient to overcome a slow period
c. one that could result in cash flow problems
d. extremely inadequate - ANSWER-a. adequate for taking on a major project
The cost of equipment is 1,000, the cost of material is 6,000, and direct labor is 3,000.
Project overhead is 20% of direct labor, general overhead is 10% of direct labor and
materials, and profit is 10% of all cost. The owner offers to pay 12,000. If the contractor
accepts the offer, what would be the contractor's anticipated profit or loss?
a. profit 1,100
b. profit 500
c. loss 1,750
d. loss 650 - ANSWER-b. profit 500
completion. No extension of time was requested or granted. How much does the
contractor earn or owe?
a. owes 2,500 in liquidated damage
b. owes 500 in liquidated damage
c. is due a 2,500 bonus from the owner
d. is due a 500 bonus from the owner - ANSWER-
A job has a price of 165,000 after direct costs and overhead are factored. What will the
final bid be if the profit markup is 11.5%
a. 186,440
b. 183,975
c. 179,545
d. 189,874 - ANSWER-a. 186,440
Give the following information, is it advantageous to purchase or rent this particular
piece of equipment if it has 3 useful years?
purchase rent
Initial cost 10,000 0
rental 0 550
salvage value 2,0000 0
insurance 40 0
operating costs 200 0
B LICENSE (CALCULATION PART) 100%
CORRECT
The owner requests changes which will cost the contractor $2,500 in labor and
materials and $700 in overhead costs. With the change, the contractor would be
relieved of $1,000 in labor costs and $280 in overhead costs from the original contract.
The original bid included profit of 10% of all costs. The contractor wants to make a profit
of 10% of all costs on the changes. The amount of the change order should included a
request of an additional.
A. $1820
B. $2,112
C. $3,200
D. $3,520 - ANSWER-B. $2,112
A lump sum contract on a project has a total contract price of $200,000. Retainage has
been held back at 10%. The contractor has received progress payments of 90% of the
project. The contractor submits a request for the final payment for the now completed
project. The final payment amount should be for
A. less than 25,000$
b. between 25,000$ & 35,000$
c. between 35,000$ & 40,000$
d. more than 40,000$ - ANSWER-c. between 35,000$ & 40,000$
A contractor agrees to unit price contract to Product A fir $50 per unit, product B for $50
per unit, and product C for $375 per unit. The contractor is also to add 30% for
overhead and profit. How much the contractor should be paid for producing 27 units of
product A, 56 units of product B and 78 units of product C?
a. less than 40,000$
b. between 40,000$ & 45,000$
c. between 45,000 & 50,000$
d. more than 50,000$ - ANSWER-b. between 40,000$ & 45,000$
A contract calls for liquidated damage of 500$ per day. The project completed five days
late because it was delayed by rain. The completion would have been 10 days earlier if
it were not for the rain delay. There was a 500$ bonus per day for the contractor early A
, firm has current assets of 68,000, fixed assets of 162,000, current liabilities of 45,000,
long term liabilities of 72,000. The firm 's financial position would be considered to be
a. adequate for taking on a major project
b. sufficient to overcome a slow period
c. one that could result in cash flow problems
d. extremely inadequate - ANSWER-a. adequate for taking on a major project
The cost of equipment is 1,000, the cost of material is 6,000, and direct labor is 3,000.
Project overhead is 20% of direct labor, general overhead is 10% of direct labor and
materials, and profit is 10% of all cost. The owner offers to pay 12,000. If the contractor
accepts the offer, what would be the contractor's anticipated profit or loss?
a. profit 1,100
b. profit 500
c. loss 1,750
d. loss 650 - ANSWER-b. profit 500
completion. No extension of time was requested or granted. How much does the
contractor earn or owe?
a. owes 2,500 in liquidated damage
b. owes 500 in liquidated damage
c. is due a 2,500 bonus from the owner
d. is due a 500 bonus from the owner - ANSWER-
A job has a price of 165,000 after direct costs and overhead are factored. What will the
final bid be if the profit markup is 11.5%
a. 186,440
b. 183,975
c. 179,545
d. 189,874 - ANSWER-a. 186,440
Give the following information, is it advantageous to purchase or rent this particular
piece of equipment if it has 3 useful years?
purchase rent
Initial cost 10,000 0
rental 0 550
salvage value 2,0000 0
insurance 40 0
operating costs 200 0
