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CRA Math Test Questions & Answers 2024/2025
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CRA Math Test Questions & Answers 2024/2025
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CRA Math Test Questions & Answers2024/2025
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? - ANSWERSDivide $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? - ANSWERSFirst 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? - ANSWERSFirst 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 - ANSWERSA 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
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