View History Bookmarks Window Help 4 100 kg Fri 552 PM K 119
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 |

