For Reel, Inc. is a manufacturer of fishing rods. The company produces the rods in small batches. At the beginning of the year, For Reel estimated total manufacturing overhead of $24,200, total direct labor hours of 2,000 and total machine hours of 1,000. The company uses a traditional, normal costing system and allocates manufacturing overhead to production using the most appropriate allocation base for its highly automated manufacturing environment.

During January, For Reel started and finished Job Allatoona. The job consisted of 10 identical fishing rods sold at a sales price of $500 per rod. A total of $1,500 in direct materials were requisitioned for the job during the month. Direct laborers were paid at a rate of $22 per direct labor hour and were paid $132 in total for work performed on the job. The job required 3.0 hours of machine time. Assuming 4 of the rods were sold during January, what is the total gross profit reported on the job during the month?

A.

$1,977.24

B.

$1,320.80

C.

$1,338.40

D.

$1,318.16

E.

$1,332.68