RJB Building Routinely Bids on Construction Jobs

Multiple Choice

RJB Building routinely bids on construction jobs. The company first determines the budgeted product cost of the job and then applies a markup of 45%. If a bid of $20,000 is submitted for a new job, which of the following statements applies?

A) The budgeted product cost is $20,000.
B) All costs pertaining to the job total $20,000.
C) $6,207 includes selling and administrative expense and profit.
D) $6,207 includes fixed overhead, selling and administrative expense, and profit.