Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Crimson:

Direct material	$	340,000
Direct labor		610,000
Allocated variable overhead		420,000
Allocated fixed cost		110,000

Which of the following cost figures should be used in setting a minimum bid price if Harlen has excess capacity?

A.$530,000.

B.$950,000.

C.$1,370,000.

D.$1,480,000.

E.None of the answers is correct.