Fogelin Promotional Services Uses a Job Order System for Costing

question 48

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 2014, Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $676,800, and a total of 7,200 billable hours for the year. All remaining office and administrative costs were estimated at $403,200. The allocation base for office and administrative costs is billable hours. 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

---

Definitions:

Valence

The value or importance an individual places on the expected outcome of a particular behavior or action.

Expectancy

The belief or anticipation regarding the outcome of one's efforts, which can significantly influence motivation and behavior.

Publicly

Pertains to anything done or existing in open view, accessible to all members of the community or targeted audience, often under public scrutiny.

Discomfort

A feeling of physical or emotional unease or discomfort, often leading to avoidance behavior or a desire for change.