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Poulton Ltd is trying to decide which one of two contracts it will accept. The costs and revenues associated with each are listed below: Contract
Poulton Ltd is trying to decide which one of two contracts it will accept. The costs and revenues associated with each are listed below: Contract revenue Materials Labour Cost incurred for consulting advice Allocated portion of overhead Contract A Contract B () () 300,000 360,000 20,000 20,000 98,000 130,000 1,500 1,500 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? Select one answer: O Contract revenue and labour costs Materials, consulting advice and allocated overhead Labour costs and allocated overhead Cost of consulting advice and allocated overhead
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