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:

Pectoralis Minor

A thin, triangular muscle located beneath the pectoralis major, involved in movements of the shoulder and scapula.

Serratus Anterior

A muscle on the side of the chest that assists in moving the shoulder blade.

Subclavius

A small muscle located under the clavicle, which plays a role in stabilizing the clavicle during arm and shoulder movements.

Rotator Cuff

A group of muscles and tendons surrounding the shoulder joint, maintaining its stability and allowing a wide range of arm movements.