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 $403,900 and a total of 7200 billable hours for the year. The office and administrative costs were estimated at $679,000. What direct labor rate would Fogelin use for the cost of its specialists? (Round your answer to the nearest cent.)
A) $94.31 per hour
B) $150.40 per hour
C) $38.21 per hour
D) $56.10 per hour
D) $56.10 per hour
Explanation: Total compensation to specialists (A) $403,900
Total number of hours billed by specialists (B) 7200 hours
Cost of specialists per hour (A / B) $56.10
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