Littleton Promotional Services Uses a Job Order System for Costing

question 116

Multiple Choice

Littleton Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Littleton has four public relations specialists and office staff.At the beginning of 2019,Littleton estimated the total cost of salaries and benefits for the public relations specialists at $680,000 and a total of 8000 billable hours for the year.The office and administrative costs were estimated at $408,000.The allocation base for office and administrative costs is billable hours.A new client is contracting with Littleton to promote a ballet tour in the United States.Littleton estimates that the job will require 38 billable hours of specialist time.If Littleton wishes to have a 20% mark up on cost on the job,what price should Littleton quote to the client?

• A) $3230
• B) $1938
• C) $6202
• D) $1034

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Definitions:

Empathy Gap

The inability to accurately predict one's own or others' emotional states and behaviors in different situations, usually underestimating the influence of emotions.

Tend and Befriend

A theory that suggests in times of stress, individuals, particularly females, will seek social alliances and support, rather than isolating themselves or fighting.

Stressful Situations

Scenarios that cause psychological or physical tension or strain.

Social Networks

Platforms or structures made up of individuals or organizations that are connected through various social relationships, like friendships or professional ties.