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

---

Definitions:

Electroconvulsive Therapy

A medical treatment involving electrical stimulation of the brain under anesthesia, typically used for severe depression.

Repetitive Transcranial Magnetic Stimulation

A non-invasive procedure that uses magnetic fields to stimulate nerve cells in the brain to treat depression and other conditions.

Seizures

Abrupt involuntary electrical activity in the brain leading to alterations in actions, physical movements, emotions, and awareness levels.

Dual-action Drugs

Medications designed to target multiple pathways or mechanisms of disease simultaneously, often to improve efficacy or reduce side effects.