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View History Bookmarks Window Help 4:) 100% kg, Fri 5:52 PM K) 1/19/18 5c52 PM Acct 1000 VO850 201BW! (A) Test: Week #2 Exam #4 This Question: 1 pt Kyle Masano Time Remaining: 0049:13 Submit Test 5of16(1 complete) This Test: 18 pts possible Littletion Promotional Services uses a job order system for costing and billing promotional services for dance and balet perfomances. Liteton has four public nelations of 8,000 billable hours for the year. The office and administrative costs were estimated at $408,000. The allocation base for office and administrative costs is billable hours. Anew dlient is contracting with Littleton to promote a balet tour in the United States Littleton estimates that the job wil equire 38 bilable hours of specialist Myspecialists and office staltf. At the beginning of 2016, Lileton estimated the total cost off salaries and benelits for the public relations specialists at $680,000 and a total Co 0 A $1,292 OC. $1,938 Click to select your answer 8 0

Solution

Answer

A

Estimated Salaries

680000

B

Office & Administration cost

408000

C=A+B

Total cost

1088000

D

Allocation Base

8000 billable hours

E=C/D

Cost per billable hours

136

F

Job requirement

38 billable hours

G=E x F

Total cost for the job

$5168

H=G x 25%

Mark up 25%

[5168 x 25%] $1292

I=G + I

Price to be quoted

$6460

A	Estimated Salaries	680000
B	Office & Administration cost	408000
C=A+B	Total cost	1088000
D	Allocation Base	8000 billable hours
E=C/D	Cost per billable hours	136
F	Job requirement	38 billable hours
G=E x F	Total cost for the job	$5168
H=G x 25%	Mark up 25%	[5168 x 25%] $1292
I=G + I	Price to be quoted	$6460