Answer the Following Questions Using the Information Below:
Comfort Manufacturing

question 6

Multiple Choice

Answer the following questions using the information below:
Comfort Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winton High School band jacket job.
$\begin{array}{llc}&\text { Company }&\text { Winton High School Job }\\\text { Direct materials } & \$ 40,000 & \$ 2,000 \\\text { Direct labor } & \$ 10,000 & \$ 400 \\\text { Manufacturing overhead costs } & \$ 45,000 & \\\text { Machine-hours } & 100,000 \mathrm{mh} & 900 \mathrm{mh}\end{array}$
-What is the bid price for the Winton High School job if the company uses a 40% markup of total manufacturing costs?

• A) $2,310
• B) $2,880
• C) $2,058
• D) $3,927

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Definitions:

Central Developmental Task

A crucial challenge that must be met or mastered during a stage of development.

Initiative

The ability to assess and initiate things independently; often refers to taking charge, being proactive, or launching new projects.

Preschooler

A child who is in the age group that attends preschool, typically between the ages of 3 and 5 years old.

Regression

A defense mechanism in which the person adapts behavior that was comforting earlier in life to overcome the discomfort and insecurity of the present situation.