FL Building Practice Questions - Florida Certified Building Contractor Examination Exam

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A contractor's annual overhead is $240,000 and expected annual revenue is $1,200,000. If a project has direct costs of $85,000, what overhead should be allocated to that project using the overhead rate method?

$$17,000 $$20,000 $$24,000 $$85,000

Correct Answer:

$$17,000

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