The firm had two consultations with this client and

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Reference no: EM13477982

A law firm uses activity-based pricing. The company's 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

150,000

Admin labor hours

10,000 labor hours

Client Service

99,000

Number of clients

110 clients

The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer?

a) $2,915

b) $6,850

c) $2,850

d) $5,950

Reference no: EM13477982

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