Question
Island Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Island has four public relations specialists
Island Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Island has four public relations specialists and office staff. At the beginning of the year, Island estimated the total cost of salaries and benefits for the public relations specialists at $ 684 comma 000 and a total of 7 comma 600 billable hours for the year. The office and administrative costs were estimated at $ 418 comma 000. The allocation base for office and administrative costs is billable hours. In June, Island signed a contract for a Russian ballet performance. It negotiated a price of $ 6 comma 400 for its services. When the job was complete, Island's records showed that it had logged 37.5 billable hours. What was the actual total cost of the job for Island? A.2063 B.5438 C.1312 D.3375
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