Confused. Answer was 80,000 but I don't understand why markup rate isn't included in the cost.. Joni's Kitty Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy Mouse product. Estimates for this order include: Direct materials $40,000; 500 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total manufacturing costs. Estimated total product costs for this special order equal: A) $80,000 B) $96,000 C) $50,000 D) None of these answers is correct