Fogelin Promotional Services Uses a Job Order System for Costing

question 58

Multiple Choice

Fogelin Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Fogelin has 4 public relations specialists, plus an office staff. At the beginning of 2013, Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $403 200, and a total of 7 200 available hours for the year. All remaining office and administrative costs were estimated at $676 800. In June, Fogelin signed a contract for a Russian ballet performance. They negotiated a price of $6 400 for their services. When the job was complete, Fogelin's records showed that they had logged
36.5 available hours. What was the amount of gross profit that Fogelin made on the job?

• A)$925
• B)$1 494
• C)$4 356
• D)$2 969

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Definitions:

Interest Rates

The expense associated with taking out a loan or the benefit received from depositing funds, typically described as a yearly percentage of the total sum.

GDP

Gross Domestic Product (GDP) signifies a country's economic output, quantifying the sum value of all produced goods and services within a designated timeframe.

Federal Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues within a fiscal year.

National Debt

The total amount of money that a country's government has borrowed, usually as a result of spending more than it receives in income.