Fogelin Promotional Services Uses a Job Order System for Costing

question 79

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. A new client is contracting with Fogelin to promote a ballet tour in the U.S. Fogelin estimates that the job will require 40 available hours of specialist time. If Fogelin wishes to make a 25% gross profit on the job, what price should Fogelin quote to the client?

• A)$2 800
• B)$4 700
• C)$7 500
• D)$6 000

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Definitions:

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