Fogelin Promotional Services Uses a Job Order System for Costing

question 104

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 $403,200, and a total of 7,200 billable hours for the year. The office and administrative costs were estimated at $676,800. The allocation base for office and administrative costs is billable hours. 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

---

Definitions:

Luteal Phase

The phase of the ovarian cycle during which a follicle becomes a corpus luteum and then degenerates.

Ovarian Cycle

The series of events in a female's body that occur from one menstruation to the next, involving ovulation and the preparation of the uterus for possible pregnancy.

Premenstrual Discomfort

Symptoms and physical discomfort often experienced by women in the days leading up to their menstrual period, including mood swings, tender breasts, food cravings, fatigue, irritability, and depression.

Physiological Processes

Biological functions and activities that maintain living organisms, encompassing everything from breathing to digestion.