Littleton Promotional Services Uses a Job Order System for Costing

question 121

Multiple Choice

Littleton Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Littleton has four public relations specialists and office staff.At the beginning of 2016,Littleton estimated the total cost of salaries and benefits for the public relations specialists at $660,000 and a total of 7,500 billable hours for the year.The office and administrative costs were estimated at $390,000.The allocation base for office and administrative costs is billable hours.A new client is contracting with Littleton to promote a ballet tour in the United States Littleton estimates that the job will require 40 billable hours of specialist time.If Littleton wishes to have a 25% mark up on cost on the job,what price should Littleton quote to the client?

• A) $3,520
• B) $2,080
• C) $7,000
• D) $1,400

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Definitions:

Necessary Skills

Essential abilities or competencies required to perform specific tasks or roles effectively.

Resources

Materials, money, services, and other assets that can be drawn on by a person or organization to function effectively.

Timely

Occurring at a suitable or opportune moment, often implying punctuality or appropriateness in timing.

SMART Goal

A framework for setting goals that are Specific, Measurable, Achievable, Relevant, and Time-bound, enhancing the likelihood of success.