Fogelin Promotional Services Uses a Job Order System for Costing

question 138

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 specialists?

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

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Definitions:

Slushies

Frozen, flavored sweet drinks made by mixing ice with a flavored syrup, commonly sold at convenience stores or during summer events.

Without Collusion

Operating or competing in a market where firms or participants act independently and do not engage in agreements to control prices or market shares.

Begin Advertising

The initial phase in which a business or organization promotes its product or service to the target market through various media channels.

Maximize Profits

The goal of operating in a way that achieves the highest possible profit from business activities.