CRA MATH QUESTIONS WITH ALL CORRECT & 100%
VERIFIED ANSWERS|LATEST UPDATE|ALREADY GRADED
A+
Question: An institution has an F&A rate (MTDC) of 40%. The total cost award is $200,000 with no
exclusions. What are the total direct costs for the project? ✔Correct Answer-Divide $200,000 by
1.40 ANSWER: $142,857
Question: An institution has an F&A rate (MTDC) of 40%. The total cost award of $165,000, includes a
$25,000 item of equipment that is excluded from the F&A base. What are the total direct costs for
the project? ✔Correct Answer-First subtract $25,000 from $165,000. Divide the remainder
($140,000) by 1.40 To the result ($100,000) add back the $25,000 ANSWER: $125,000
Question: An agency program has a total cost limit of $200,000. An institution has an F&A rate
(MTDC) of 40%, and a fringe benefit rate of 25%. The project requires $20,000 for supplies. How
much of the remaining costs are "left" for actual salaries; how much for fringe benefits? ✔Correct
Answer-First divide $200,000 by 1.40 (result, $142,857 total direct costs). Next, subtract $20,000
from $142,857 (result, $122,857 available for salaries and fringe benefits. Divide the remainder
$122,857) by 1.25 (result, $98,286). ANSWER: $98,286 is available for salaries; $24,571 ($122,857
minus $98,286) is available for fringe benefits.
Question: The sponsor has given approval to completely re-budget a salary line item for a technician
to help cover the costs of an expensive piece of equipment. The amount budgeted for the
technician's salary is $40,000. The institution has an F&A rate of 112% based on salaries and wages
and a fringe benefit rate of 31.2%. How much will be available for the purchase of the equipment?
A. 84,800
B. 40,000
C. 97,280
D. 52,480 ✔Correct Answer-A reasonable argument can be made as to why any one of these
answers should be correct. For example, you can say that it only specifies that approval was given for
$40,000, so that should be your answer. But it did say that you were "completely" removing a salary
line item. Therefore what use would there be to having the associated fringe benefits remain in that
category? So is 52,480 the right answer (40,000 x1.312)? But you will also have the associated
indirect costs available (maybe, maybe not ... they don't clarify who the sponsor is. But with a rate as
high as 112% and with salary as the base, one would assume that this must be federal and therefore
that the IDC would become available). So either 84,800 or 97,280 could be correct depending on
whether or not you included the fringe benefits from the previous assumption.
Question: Institution wants to re-budget $10,000 from equipment into salary and fringe. F&A rate is
40%, fringe rate is 30%. How much will be available for salary and fringe? ✔Correct Answer-
Answer: $5494.50 Salary + $1648.35 EBs = $7142.85 . This is equal to $10,000/1.4.
Question: Dr. Jones received an NIH award. The total costs awarded were: $500,000. There are two
subcontracts of $40,000 total costs each. F&A rate for the prime is 53%. How much is available for
PRIME direct costs? ✔Correct Answer-$500,000 - $30,000 for subs over $25k = $470,000 x .53 IC =
$241,900. $241,900 + $40,000 for Subs leaves $500,000 - $289,100 = $210,900 for Prime direct costs.
VERIFIED ANSWERS|LATEST UPDATE|ALREADY GRADED
A+
Question: An institution has an F&A rate (MTDC) of 40%. The total cost award is $200,000 with no
exclusions. What are the total direct costs for the project? ✔Correct Answer-Divide $200,000 by
1.40 ANSWER: $142,857
Question: An institution has an F&A rate (MTDC) of 40%. The total cost award of $165,000, includes a
$25,000 item of equipment that is excluded from the F&A base. What are the total direct costs for
the project? ✔Correct Answer-First subtract $25,000 from $165,000. Divide the remainder
($140,000) by 1.40 To the result ($100,000) add back the $25,000 ANSWER: $125,000
Question: An agency program has a total cost limit of $200,000. An institution has an F&A rate
(MTDC) of 40%, and a fringe benefit rate of 25%. The project requires $20,000 for supplies. How
much of the remaining costs are "left" for actual salaries; how much for fringe benefits? ✔Correct
Answer-First divide $200,000 by 1.40 (result, $142,857 total direct costs). Next, subtract $20,000
from $142,857 (result, $122,857 available for salaries and fringe benefits. Divide the remainder
$122,857) by 1.25 (result, $98,286). ANSWER: $98,286 is available for salaries; $24,571 ($122,857
minus $98,286) is available for fringe benefits.
Question: The sponsor has given approval to completely re-budget a salary line item for a technician
to help cover the costs of an expensive piece of equipment. The amount budgeted for the
technician's salary is $40,000. The institution has an F&A rate of 112% based on salaries and wages
and a fringe benefit rate of 31.2%. How much will be available for the purchase of the equipment?
A. 84,800
B. 40,000
C. 97,280
D. 52,480 ✔Correct Answer-A reasonable argument can be made as to why any one of these
answers should be correct. For example, you can say that it only specifies that approval was given for
$40,000, so that should be your answer. But it did say that you were "completely" removing a salary
line item. Therefore what use would there be to having the associated fringe benefits remain in that
category? So is 52,480 the right answer (40,000 x1.312)? But you will also have the associated
indirect costs available (maybe, maybe not ... they don't clarify who the sponsor is. But with a rate as
high as 112% and with salary as the base, one would assume that this must be federal and therefore
that the IDC would become available). So either 84,800 or 97,280 could be correct depending on
whether or not you included the fringe benefits from the previous assumption.
Question: Institution wants to re-budget $10,000 from equipment into salary and fringe. F&A rate is
40%, fringe rate is 30%. How much will be available for salary and fringe? ✔Correct Answer-
Answer: $5494.50 Salary + $1648.35 EBs = $7142.85 . This is equal to $10,000/1.4.
Question: Dr. Jones received an NIH award. The total costs awarded were: $500,000. There are two
subcontracts of $40,000 total costs each. F&A rate for the prime is 53%. How much is available for
PRIME direct costs? ✔Correct Answer-$500,000 - $30,000 for subs over $25k = $470,000 x .53 IC =
$241,900. $241,900 + $40,000 for Subs leaves $500,000 - $289,100 = $210,900 for Prime direct costs.
