A bridge design firm is performing an economic analysis of two mutually exclusive designs fora highway overpass. The steel girder option has an initial cost of $2.13 million, and the concrete option has an initial cost of $2.41 million. Every 25 years, the steel bridge must be painted at a cost of $610,000, and all other maintenance costs are the same for both options. The steel bridge is expected to last 50 years, and concrete bridge is expected to last 75 years. Both are assumed to be identically replaced indefinitely. Based on the shortest acceptable analysis period for each option, determine the equivalent uniform annual cost (EUAC) for the best option using an interest rate of 8%. Express your answer in $ to the nearest $1,000.

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.