Fogelin Promotional Services Uses a Job Order System for Costing

question 17

Multiple Choice

Fogelin Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Fogelin has four public relations specialists,and 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.What rate would Fogelin use for the cost of its specialists?

• A)$94 per hour
• B)$150 per hour
• C)$68 per hour
• D)$56 per hour

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Definitions:

Operating Cash Payments

Cash payments made by a business for its operational activities, such as paying for goods, services, and employee salaries.

Equity Securities

Financial instruments representing ownership interest in a corporation, such as stocks.

Debt Securities

Financial instruments representing a loan made by the investor to the issuer, which can include government bonds, corporate bonds, and other types of debts.