Superior Company Is Involved in a Competitive Bidding Situation Which of the Following Cost Figures Should Be Used in Following

Multiple Choice

Superior Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Southlake: $$\begin{array} { l r } \text { Direct material } & \$ 340,000 \\\text { Direct labor } & 610,000 \\\text { Allocated variable overhead } & 420,000 \\\text { Allocated fixed cost } & 110,000\end{array}$$ Which of the following cost figures should be used in setting a minimum bid price if Superior has excess capacity?

A) $530,000.
B) $950,000.
C) $1,370,000.
D) $1,480,000.
E) None of the other answers are correct.