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VIRGINIA CLASS A CONTRACTOR
LICENSING EXAM PRACTICE
QUESTIONS AND CORRECT ANSWERS
Question 1 The owner requests for change which will cost the contractor $15,000 in labor and materials and $2,250 in overhead costs. With the change, the contractor would be relieved of $18,000 in labor and materials costs, and $2,400 in overhead costs from the original contract. The original bid included profit of 20% of all costs. The contractor wants to make a profit of 20% of all costs on the changes. The adjusted contract price for the change order should be...
- An increase of $3,780
- A decrease of $3,780
- A decrease of $3,150
- An increase of $3,150
Correct Answer: B) A decrease of $3,780
Question 2 Which of the following would typically be covered by a contractor's comprehensive general liability insurance policy?
- Injuries to the contractor's employees
- Damage to the contractor's own equipment
- Damage to adjoining property from a crane accident
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- Errors and omissions in the architectural design
Correct Answer: C) Damage to adjoining property from a crane accident
Question 3 What is the total gross compensation and employment status for a carpenter, given the following information? A contractor hires a carpenter to do the finish work for a 10-home project. The carpenter is to be paid $16 per hour. The contractor provides all materials and equipment, such as a table saw. The carpenter provides all of his own hand tools. The contractor and the carpenter agree that all of the homes are to be completed within 60 8-hour working days, without overtime. The contractor provides the carpenter with a schedule of the order in which homes are to be worked on. The contractor provides a helper to assist the carpenter. The contractor sets the work schedule each day. The carpenter spends 600 hours to complete this project, including 120 hours of overtime.
- The carpenter is an independent contractor and is owed $10,560 for the
- The carpenter is an employee and is owed $9,600 for the project
- The carpenter is an employee and is owed $10,560 for the project
- The carpenter is an independent contractor and is owed $11,520 for the
project
project
Correct Answer: C) The carpenter is an employee and is owed $10,560 for the
project
Question 4 What is the name of the process when a facilitator meets with the major participants in a project, prior to the commencement of the project, to identify the shared goals of all participants?
- Mediation
- Partnering
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- Arbitration
- Bid leveling
Correct Answer: B) Partnering
Question 5 What is the average collection period ratio for a firm that has $365,000 in annual revenues, $6,600 in current receivables, and net income of $32,000?
A) 5.2
B) 7.8
C) 4.4
D) 6.6
Correct Answer: D) 6.6
Question 6 Who oversees compliance with Material Safety Data Sheets?
A) EPA
- Department of Labor
C) OSHA
D) ANSI
Correct Answer: C) OSHA
Question 7 A non-exempt employee of a contractor covered by the Fair Labor Standards Act works 60 hours during a workweek. The agreement is to pay the employee $400 each week regardless of the numbers of hours worked. What should be the employee's gross pay for the worksheet?
A) $700.50
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B) $600.00
C) $400.00
D) $550.00
Correct Answer: A) $700.50
Question 8 In the previous year, a company had revenues of $500,000 project overhead of $40,000 and company overhead of $75,000. The company expects the percentage for project and company overhead to remain the same for the current year. The company desires to make a 10% profit on a project it is bidding. The project would have $80,000 in direct costs. What should the bid price be?
- Between $90,000 and $100,000
- Between $100,000 and $110,000
- Between $110,000 and $120,000
- Between $120,000 and $130,000
Correct Answer: C) Between $110,000 and $120,000
Question 9 How much state income tax MUST be paid by a corporation that has $30,000 of Federal taxable income? The company deducted $2,000 of state and local taxes on the Federal return, and had $2,000 of qualified worker retraining expenses.The corporation does business ONLY in Virginia.
