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:

Organizational Characteristics

The traits, qualities, and features that define and distinguish a specific organization, impacting its operations and effectiveness.

Max Weber

A German thinker in the fields of sociology, philosophy, and political economics whose concepts significantly impacted the study and theory of society.

McDonaldization

A term referring to the process by which the principles of the fast-food industry, such as efficiency, calculability, predictability, and control, have come to dominate other sectors of society.

George Ritzer

A sociologist known for his work on the McDonaldization thesis, which suggests that society is becoming more efficient and predictable but also more irrational.