Answer the Following Questions Using the Information Below:
Comfort Manufacturing

Multiple Choice

Answer the following questions using the information below:
Comfort 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 Winton High School band jacket job.
$\begin{array}{llc}&\text { Company }&\text { Winton High School Job }\\\text { Direct materials } & \$ 40,000 & \$ 2,000 \\\text { Direct labor } & \$ 10,000 & \$ 400 \\\text { Manufacturing overhead costs } & \$ 45,000 & \\\text { Machine-hours } & 100,000 \mathrm{mh} & 900 \mathrm{mh}\end{array}$
-What is the bid price for the Winton High School job if the company uses a 40% markup of total manufacturing costs?

A) $2,310
B) $2,880
C) $2,058
D) $3,927