Needham Company Uses a Job-Order Costing System The Company Applies Overhead at 120% of Direct Labor Cost

Multiple Choice

Needham Company uses a job-order costing 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: $$\begin{array} { l r r r } & \text { Job A } & \text { Job B } & \text { Job C } \\\text { Beginning Balances } & \$ 4,000 &\$ 3 , 0 0 0 &\$ 6 , 0 0 0 \\\text { Direct Materials } & 1,000 & 1,600 & 2,000 \\\text { Direct Labor } & 2,400 & 4,600 & 1,800\end{array}$$
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.)

A) $6,800
B) $5,880
C) $1,280
D) $14,720