Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Gibson Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield High School band jacket job.

-What is the bid price for the Winfield High School job if the company uses a 40% markup of total manufacturing costs?

A) $2,310
B) $588
C) $1,680
D) $2,058