Gypsum Park Recreation is exploring a competitive bidding situation. The firm, which currently has no excess capacity, estimates the following costs for a project to be performed for the Talent School District: Direct material$220,000 Direct labor 130,000 Allocated variable overhead 91,000 Allocated fixed cost 40,000 Which of the following cost figures would be used in determining a minimum price if Gypsum Park decides to bid on the Talent project?
A. $350,000.
B. $441,000.
C. $131,000.
D. $481,000.
E. None of the answers is correct.
Answer: D
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