What additional costs will be charged to the customer

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A law firm uses activity-based pricing. The company's annual activity pools and related information are as follows:

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

Question 1: 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?

Option 1: $1,954

Option 2: $2,039

Option 3: $721

Option 4: $1,442

Reference no: EM132547759

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