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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:
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.
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