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Business, 06.06.2021 22:20 alyssa0888

Stephenson Company is trying to decide which one of two contracts it will accept. The costs and revenues associated with each are listed below: Contract X Contract Z Contract Revenue $ 200,000 $ 260,000 Materials 10,000 10,000 Labor 88,000 120,000 Depreciation on Equipment 8,000 10,000 Cost Incurred for Consulting Advice 1,500 1,500 Allocated Portion of Overhead 5,000 3,000 The equipment was purchased last year and has no resale value. Which of these amounts is relevant for the selection of one contract over another? a) Contract revenue and labor costs
b) Materials, consulting advice and allocated overhead
c) Cost of consulting advice and allocated overhead
d) Contract revenue, labor costs and depreciation on equipment

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