Fogelin Promotional Services Uses a Job Order System for Costing

question 87

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 the year,Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $403,300 and a total of 7200 billable hours for the year.The office and administrative costs were estimated at $676,000.What direct labor rate would Fogelin use for the cost of its specialists? (Round your answer to the nearest cent.)

• A)$93.89 per hour
• B)$149.90 per hour
• C)$37.88 per hour
• D)$56.01 per hour

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Definitions:

Excess Returns

Returns on an investment that exceed the benchmark or risk-free return, often used as a measure of the performance of investment managers.

Risk-free Asset

An investment that is expected to deliver its promised returns without any risk of financial loss, typically associated with government bonds.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk compared to a risk-free investment.

Excess Returns

The return on an investment beyond the return expected from risk level, often used to assess performance.