Fogelin Promotional Services Uses a Job Order System for Costing

question 65

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 $403,900 and a total of 7200 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) $94.31 per hour
• B) $150.40 per hour
• C) $38.21 per hour
• D) $56.10 per hour

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Definitions:

Inelastic Demand

A situation where the demand for a product does not significantly change in response to changes in its price.

Business Travel

The act of traveling for the purpose of conducting business-related activities.

Price Elasticity

Indicates the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity supplied by producers at that price.