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:

GATT

General Agreement on Tariffs and Trade, a legal agreement minimizing barriers to international trade.

Tariff

A tax imposed on imported goods and services, typically to restrict trade, increase government revenue, or protect domestic industries.

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Thick cuts of tuna fish meat, often cooked by grilling, broiling, or searing, popular in various culinary traditions.

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