Neptune Pool Company Is Involved in a Number of Competitive

Multiple Choice

Neptune Pool Company is involved in a number of competitive bidding situations.The following costs are anticipated for a project to be bid for Trimex Manufacturing:
Which of these costs would be treated differently if Neptune had either excess capacity or no excess capacity?

A) Direct materials used,$680,000.
B) Direct labor,$2,450,000.
C) Allocated variable overhead,$570,000.
D) Allocated fixed cost,$230,000.
E) None of these,as all four costs are considered in both situations.