Fogelin Promotional Services Uses a Job Order System for Costing

question 62

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. In June, Fogelin signed a contract for a Russian ballet performance. They negotiated a price of $6,400 for their services. When the job was complete, Fogelin's records showed that they had logged 36.5 billable hours. What was the amount of gross profit that Fogelin made on the job?

• A)$1,494
• B)$2,969
• C)$925
• D)$4,356

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Definitions:

Groundlings

Historically, audience members who stood in the pit of the Elizabethan theatres, most notably in Shakespeare's time.

Pronoun

A word that takes the place of a noun, such as 'he,' 'they,' or 'it,' used to avoid repetition.

Globe Theatre

A historic theater in London associated with William Shakespeare, known for its open-air, circular design.

Pronoun

A word that takes the place of a noun, used to avoid repetition or to refer to participants in the discourse.