Fogelin Promotional Services Uses a Job Order System for Costing

question 55

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.
In June, Fogelin signed a contract for a Russian ballet performance. They estimated it would require 34 hours of specialist time. What is the total cost estimate for this contract?

• A) $1,904
• B) $5,100
• C) $3,196
• D) $4,906

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Definitions:

Experimental Method

A research methodology involving the manipulation of variables to determine cause-and-effect relationships.

Cause-and-effect Conclusions

Deductive reasoning that connects an action or event (the cause) to outcomes or consequences (the effect), establishing a causal relationship.

Descriptive/Correlational Research

A research method that involves observing and describing the behavior of a subject without influencing it in any way, often used to identify patterns or relationships between variables.

Systematically Observes

Methodically and rigorously watching and recording phenomena or behaviors for analysis.