Question
A law firm uses activity-based pricing. The company's annual activity pools and related information are as fol-lows: Cost Pool Estimated Cost Cost Driver Driver Quantity
A law firm uses activity-based pricing. The company's annual activity pools and related information are as fol-lows:
Cost Pool Estimated Cost Cost Driver Driver Quantity
Consultation $125,000 Number of consultations 200 consultations
Administrative costs 66,000 Admin labor hours 6,000 labor hours
Client service 34,000 Number of clients 400 clients
The pricing structure is to charge customers for the cost of the services that are provided. The firm had two consultations with Randall's Auto Shop and required 64 administrative labor hours. What additional costs will be charged to this customer?
$1,954
$2,039
$721
$1,442
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