Question
Caroline Law firm uses activity-based pricing. The companys activity pools are as follows: Cost Pool Annual Estimated Cost Cost Driver Annual Driver Quantity Consultation 182,000
Caroline Law firm uses activity-based pricing. The companys activity pools are as follows:
| Cost Pool | Annual Estimated Cost | Cost Driver | Annual Driver Quantity |
| Consultation | 182,000 | Number of consultations | 100 consultations |
| Administrative Costs | 137,000 | Admin labor hours | 9,800 labor hours |
| Client Service | 91,000 | Number of clients | 120 clients |
The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
