Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for...

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Accounting

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 $ 510,000
Direct labor 630,000
Allocated variable overhead 400,000
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?
Multiple Choice
$510,000.
$1,140,000.
$1,540,000.
$1,650,000.
None of the answers is correct.

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