Fogelin Promotional Services Uses a Job Order System for Costing

question 58

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.
A new client is contracting with Fogelin to promote a ballet tour in the U.S. Fogelin estimates that the job will require 40 billable hours of specialist time. If Fogelin wishes to make a 25% gross profit on the job, what price should Fogelin quote to the client?

• A) $2,800
• B) $6,000
• C) $7,500
• D) $4,700

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Definitions:

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The process of generating electric power from other forms of energy, such as mechanical energy or chemical energy.

Current Flow

The movement of electric charge carriers, like electrons, through a conductor or circuit, typically described from positive to negative points.

Electron

A subatomic particle with a negative electric charge, fundamental to electricity, and a key component of atoms.

Atom

The smallest unit of a chemical element, consisting of a nucleus and electrons, forming the basis of all chemical substances.