Fogelin Promotional Services Uses a Job Order System for Costing

question 37

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 negotiated a price of $6,400 for their services. When the job was complete, Fogelin's records showed that they had logged 36.5 billable hours.
- What was the actual total cost of the job for Fogelin?

• A) $5,475
• B) $2,044
• C) $3,431
• D) $4,906

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Definitions:

Domestic Quantity Demanded

The total amount of a product or service that consumers in a specific country are willing to buy at a given price.

Hypothetical Nations

Imaginary or theoretical countries often used as case studies or models in economic theories or simulations to explore various economic scenarios.

Equilibrium World Price

The price at which the quantity of a good or service demanded globally equals the quantity supplied across countries, without trade barriers.

Domestic Quantity Supplied

The total amount of a good or service that producers are willing and able to offer for sale within a domestic market at a given price.