Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Crimson: Direct material$340,000 Direct labor 610,000 Allocated variable overhead 420,000 Allocated fixed cost 110,000 Which of the following cost figures should be used in setting a minimum bid price if Harlen has excess capacity?
A. $1,480,000.
B. $950,000.
C. $1,370,000.
D. $530,000.
E. None of the answers is correct.
Answer: C
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