Groot Promotional Services Uses a Job Order System for Costing

question 101

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 $658,000 and a total of 7,000 billable hours for the year.All remaining office and administrative costs were estimated at $392,000.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) $1,904
• B) $5,100
• C) $3,196
• D) $1,292

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Definitions:

Directional Stability Control

A vehicle safety system that helps maintain the vehicle's intended direction of travel, typically under adverse conditions.

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Shares of profit paid out by a corporation to its stockholders, generally originating from the company’s revenue.

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The amount of money for which a product or service is sold in the market.