What additional costs will be charged to this customer?

Nov 27th, 2015
Business Finance
Price: $5 USD

Question description

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                      200,000                               Number of consultations  100 consultations

 Administrative Costs        141,000                               Admin labor hours             9,600 labor hours

 Client Service                   89,000                                 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?

Tutor Answer

(Top Tutor) sainathyadlapalli
School: Duke University

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