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portunit accept one of two jobs; it cannot accept both because they must be performed at the same time and Zachary does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow. Cost Category Contract price Unit-level materials. Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of company-wide facility-sustaining costs Insurance cost for job Complete this question by entering your answers in the tabs below. Job A $818,000 245, 200 249,850 19, 600 114, 770 26, 100 21, 100 12, 200 16,800 Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Required a. Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept. Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Contribution to profit (loss) Recommend which job to accept? Job B $688,000 224, 650 305, 500 b. Assume that Job A is no longer available. Zachary's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. 14, 400 114, 770 28,900 21, 100 9,700 16,800 Required A Required B Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. (Negative amounts should be indicated by a minus sign.) Decision Job A Job B

portunit accept one of two jobs; it cannot accept both because they must be performed at the same time and Zachary does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow. Cost Category Contract price Unit-level materials. Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of company-wide facility-sustaining costs Insurance cost for job Complete this question by entering your answers in the tabs below. Job A $818,000 245, 200 249,850 19, 600 114, 770 26, 100 21, 100 12, 200 16,800 Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Required a. Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept. Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Contribution to profit (loss) Recommend which job to accept? Job B $688,000 224, 650 305, 500 b. Assume that Job A is no longer available. Zachary's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. 14, 400 114, 770 28,900 21, 100 9,700 16,800 Required A Required B Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. (Negative amounts should be indicated by a minus sign.) Decision Job A Job B

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Zachary Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Zachary does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow. Cost Category Contract price Unit-level materials Unit-level labor. Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of company-wide facility-sustaining costs Insurance cost for job Complete this question by entering your answers in the tabs below. Required a. Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept. b. Assume that Job A is no longer available. Zachary's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. Required A Required B Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. (Negative amounts should be indicated by a minus sign.) Decision Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Contribution to profit (loss) Recommend which job to accept? Job A $818,000 245, 200 249,850 19, 600 114, 770 26, 100 21, 100 12, 200 16,800 < Required A Job A Job B Job B $688,000 224, 650 305, 500 14,400 114, 770 28,900 21, 100 9,700 16,800 Required B >
Transcribed Image Text:Zachary Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Zachary does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow. Cost Category Contract price Unit-level materials Unit-level labor. Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of company-wide facility-sustaining costs Insurance cost for job Complete this question by entering your answers in the tabs below. Required a. Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept. b. Assume that Job A is no longer available. Zachary's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. Required A Required B Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. (Negative amounts should be indicated by a minus sign.) Decision Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Contribution to profit (loss) Recommend which job to accept? Job A $818,000 245, 200 249,850 19, 600 114, 770 26, 100 21, 100 12, 200 16,800 < Required A Job A Job B Job B $688,000 224, 650 305, 500 14,400 114, 770 28,900 21, 100 9,700 16,800 Required B >
Zachary Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Zachary does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow. Cost Category Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of company-wide facility-sustaining costs Insurance cost for job Required a. Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept. Complete this question by entering your answers in the tabs below. b. Assume that Job A is no longer available. Zachary's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. Required A Required B Decision Assume that Job A is no longer available. Zachary's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. (Negative amounts should be indicated by a minus sign.) Contract price Unit-level materials Unit-level labor Unit-level overhead Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Supervisor's salary Insurance cost for job Job A $818,000 245, 200 249,850 19, 600 114, 770 26, 100 21, 100 12, 200 16,800 Contribution to profit (loss) Recommend whether to accept or reject job B? < Required A Job B $688,000 224, 650 305, 500 14,400 114, 770 28,900 21, 100 9,700 16,800 Job B Required B
Transcribed Image Text:Zachary Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Zachary does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow. Cost Category Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of company-wide facility-sustaining costs Insurance cost for job Required a. Assume that Zachary has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept. Complete this question by entering your answers in the tabs below. b. Assume that Job A is no longer available. Zachary's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B. Required A Required B Decision Assume that Job A is no longer available. Zachary's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. (Negative amounts should be indicated by a minus sign.) Contract price Unit-level materials Unit-level labor Unit-level overhead Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Supervisor's salary Insurance cost for job Job A $818,000 245, 200 249,850 19, 600 114, 770 26, 100 21, 100 12, 200 16,800 Contribution to profit (loss) Recommend whether to accept or reject job B? < Required A Job B $688,000 224, 650 305, 500 14,400 114, 770 28,900 21, 100 9,700 16,800 Job B Required B
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