Question
A law firm uses activity-based pricing. The companys activity pools are as follows: Cost Pool Annual Estimated Cost Cost Driver Annual Driver Quantity Consultation 183,000
A law firm uses activity-based pricing. The companys activity pools are as follows:
| Cost Pool | Annual Estimated Cost | Cost Driver | Annual Driver Quantity |
| Consultation | 183,000 | Number of consultations | 100 consultations |
| Administrative Costs | 135,000 | Admin labor hours | 9,000 labor hours |
| Client Service | 91,000 | Number of clients | 100 clients |
The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
World Finance Since 1914
Authors: Paul Einzig
1st Edition
0415539471, 978-0415539470
