Fogelin Promotional Services Uses a Job Order System for Costing

question 114

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 $403,200 and a total of 7,000 billable hours for the year.The office and administrative costs were estimated at $679,000.What direct labor rate would Fogelin use for the cost of its specialists? (Round your answer to the nearest cent.)

• A) $97.00 per hour
• B) $154.60 per hour
• C) $39.40 per hour
• D) $57.60 per hour

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Definitions:

Sequence of Acquisition Dates

Refers to the chronological order in which significant ownership interests in other entities are obtained, impacting the consolidation process and valuation of investments.

Indirect NCI

Represents the portion of equity in a subsidiary not attributable directly to the parent company, often arising in complex group structures.

Tiered Group

A structure of multiple groups or entities arranged in a hierarchy, where control or ownership is exercised through several layers.

Notional Profits

Hypothetical or estimated profits based on assumptions or projections, not actual earnings.