Groot Promotional Services Uses a Job Order System for Costing

question 16

Multiple Choice

Groot Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Groot has four public relations specialists plus an office staff.At the beginning of the year,Groot estimated the total cost of salaries and benefits for the public relations specialists at $684,000 and a total of 7200 billable hours for the year.All remaining office and administrative costs were estimated at $432,000.The allocation base for office and administrative costs is billable hours.In June,Groot signed a contract for a Russian ballet performance.It estimated the new contract would require 36 hours of specialist time.What is the total cost estimate for this contract?

• A)$2160
• B)$5580
• C)$3420
• D)$1260

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Definitions:

Marketing

The set of activities and strategies used to promote and sell products or services, including market research, advertising, and distribution.

Customized

Specifically designed or modified to meet individual preferences or requirements.

Legal Services

Professional assistance provided by a qualified lawyer or law firm to advise or represent clients in legal matters.

Assembly Line Operations

Production processes where products are assembled in a sequential manner along a conveyor belt or line.