Groot Promotional Services Uses a Job Order System for Costing

question 156

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 $675,000 and a total of 7500 billable hours for the year.All remaining office and administrative costs were estimated at $405,000.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 34 hours of specialist time.What is the total cost estimate for this contract?

• A) $1836
• B) $4896
• C) $3060
• D) $1224

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Definitions:

Regression Line

A straight line that describes how a dependent variable y changes as an independent variable x changes.

Error of Estimate

A measure of the deviation of observed values from the values predicted by a regression line, indicating the accuracy of predictions.

Data Point

An observation.

Unique Contribution

A unique contribution refers to a specific, novel input or insight provided by a researcher or study, distinct from previous work in the field.