Fogelin Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Fogelin has four public relations specialists and office staff. At the beginning of the year, Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $ 403 comma 900 and a total of 7 comma 100 billable hours for the year. The office and administrative costs were estimated at $ 674 comma 000. What direct labor rate would Fogelin use for the cost of its specialists? (Round your answer to the nearest cent.)

Question

Business

Nelson Mendez

8 April, 16:01

Fogelin Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Fogelin has four public relations specialists and office staff. At the beginning of the year, Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $ 403 comma 900 and a total of 7 comma 100 billable hours for the year. The office and administrative costs were estimated at $ 674 comma 000. What direct labor rate would Fogelin use for the cost of its specialists? (Round your answer to the nearest cent.)

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Answers (1)

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Rene · Answer 1

labor rate for specialist 56.89

Explanation:

The adminsitrative cost are not part of the labor cost. Are not used to determinate the labor cost.

The labor cost is the salaries for the specialist.

total cost 403,900

for 7,100 hours

labor rate would be the quotient between cost and labor hours

403,900 / 7,100 = 56.88732394366 = 56.89

each billable hour cost $56.89