Question: 85. Clay Co. has considerable excess manufacturing capacity. A special job orders cost sheet includes the following applied manufacturing overhead costs: Fixed costs $21,000 Variable

85. Clay Co. has considerable excess manufacturing capacity. A special job order’s cost sheet includes the following applied manufacturing overhead costs:

Fixed costs $21,000 Variable costs 33,000 The fixed costs include a normal $3,700 allocation for inhouse design costs, although no in-house design will be done. Instead the job will require the use of external designers costing $7,750. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?

a. $36,700

b. $40,750

c. $54,000

d. $58,050

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