14. Bates Manufacturing uses a job order cost system, and overhead is applied on the basis of direct labor hours. At the beginning of the period, the company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked. Two projects were started and completed in the current accounting period. The following transactions were completed during the period: Yused $10,000 of direct material on Project I and $6,800 of direct material on Project II. Labor costs for the two jobs amounted to the following: Project 1, $24,000 (2,000 hours); Project II, $44,000 (6,000 hours). (c) Project II was sold during the period for $120,000. The company's gross margin for the period was (Do not round your intermediate calculation); $30,800. B. $18,000. C. $89,200. D. $69,200. DLACH