Needham Company uses a job order cost system. During the month of September, the company worked on three jobs. The job order cost sheets for the three jobs contained the following information at the end of September:

	Job A					Job B					Job C
Beginning Balances		$	4,000				$	3,000				$	6,000
Direct Materials			1,000					1,600					2,000
Direct Labor			2,400					4,600					1,800

The company applies overhead at 120% of direct labor cost. If Job B was sold for $16,000, what was the amount of gross margin for this job? (Ignore any consideration of underapplied or overapplied overhead.)

Multiple Choice

$5,880

$14,720

$6,800

$1,280