Groot Promotional Services uses a job order system for costing and billing promotional services for dance...

 

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Groot Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Groot has four public relations specialists plus an office staff. At the beginning of the year, Groot estimated the total cost of salaries and benefits for the public relations specialists at $658,000 and a total of 7,000 billable hours for the year. All remaining office and administrative costs were estimated at $392,000. The allocation base for office and administrative costs is billable hours. In June, Groot signed a contract for a Russian ballet performance. It estimated the new contract would require 35 hours of specialist time. What is the total cost estimate for this contract? Groot Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Groot has four public relations specialists plus an office staff. At the beginning of the year, Groot estimated the total cost of salaries and benefits for the public relations specialists at $658,000 and a total of 7,000 billable hours for the year. All remaining office and administrative costs were estimated at $392,000. The allocation base for office and administrative costs is billable hours. In June, Groot signed a contract for a Russian ballet performance. It estimated the new contract would require 35 hours of specialist time. What is the total cost estimate for this contract?

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