Problem 6-24A (Algo) Context-sensitive relevance LO 6-1

Benson 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 Benson 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.

(The image is not very clear, the Contract price for Job B is $688,000)

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 JobA $806,000 244,100 250,050 18,400 115,570 25, 100 20,700 11,800 16,800 Job B $688,000 224,050 305,400 12,900 115,570 28,200 20,700 9,300 16,800 Required a. Assume that Benson 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. Benson'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. Complete this question by entering your answers in the tabs below. Required A Required B Assume that Benson 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.) Job A Job B Decision 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 companywide facility-sustaining costs Insurance cost for job Contribution to profit (loss) Recommend which job to accept? $ 0 $ 0 Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Assume that Job A is no longer available. Benson'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.) Job B Decision 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 Contribution to profit (loss) Recommend whether to accept or reject job B? $ 0