Saber Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances

Saber has four public relations specialists and office staff. At the beginning of the year, Saber estimated the total cost of salaries and benefits for the public relations specialists at $404,000 and a total of 7,100 billable hours for the year. The office and administrative costs were estimated at $676,000. The allocation base for office and administrative costs is billable hours. What rate would Saber use for allocating the cost of its office and administrative staff? (Round your answer to the nearest cent.)
A) $95.21 per hour
B) $152.11 per hour
C) $38.31 per hour
D) $56.90 per hour


A .A)
Office and administrative costs per year $676,000
Total number of hours billed by specialists /7,100 hours
Predetermined over head allocation rate used for indirect cost $95.21

Business

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