Jack Manufacturing uses a job-order costing 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 $65,000 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:

1. (a) Used $10,100 of direct material on Project I and $6,900 of direct material on Project II.
2. (b) Labor costs for the two jobs amounted to the following: Project I, $24,500 (2,050 hours); Project II, $44,500 (6,100 hours).
3. (c) Project II was sold during the period for $121,000.

The company's gross margin for the period was: Avoid rounding your immediate calculation

Multiple Choice

• $29,950.
• $18,150.
• $91,050.
• $70,950.

Please help with answer and explanation