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Fogelin Promotional Services Uses a Job Order System for Costing

question 152

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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,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.All remaining 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.It estimated it would require 34 hours of specialist time.What is the total cost estimate for this contract?


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