Fogelin Promotional Services Uses a Job Order System for Costing

question 119

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. The 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 negotiated a price of $6,400 for their services. When the job was complete, Fogelin's records showed that they had logged 36.50 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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