Fogelin Promotional Services Uses a Job Order System for Costing

question 99

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 $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.It negotiated a price of $6,400 for their services.When the job was complete,Fogelin's records showed that it 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

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Definitions:

Life Or Death

A situation or condition that is critically vital, often implying a risk of mortality.

Confrontation

A direct engagement or encounter between conflicting parties, often with the aim of addressing and resolving a dispute.

Compromise

A process of making concessions to settle differences, where each party gives up something to reach a mutually acceptable solution.

Withdrawal

The process of reducing or eliminating the use of a substance to which one has become dependent, often accompanied by uncomfortable symptoms.