Fogelin Promotional Services Uses a Job Order System for Costing

question 168

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 2012, Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $403,200, and a total of 7,200 billable hours for the year. All remaining office and administrative costs were estimated at $676,800.
What rate would Fogelin use for the cost of its office and administrative staff?

• A) $94 per hour
• B) $150 per hour
• C) $68 per hour
• D) $56 per hour

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Definitions:

Sales Promotion

Marketing activities and incentives designed to increase consumer purchasing and stimulate product demand, often through discounts, coupons, or bonuses.

PBR World Finals

An annual championship event in professional bull riding, showcasing the top athletes and bulls in the sport.

VIP Trip

An exclusive or special travel experience often characterized by luxury accommodations and services designed for very important persons or high-profile individuals.

Sales Promotions

Marketing strategies intended to increase product visibility and sales through discounts, coupons, or special offers.