A law firm uses activity-based pricing. The company's annual activity pools and related information are as follows: Estimated Cost Driver Cost Driver Number of consultations Cost Pool Quantity Consultation consultations Administrative costs Client service $125.000 66.000 34.000 Admin labor hours Number of clients 200 6.000 labor hours 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? $1.442 $1,954 $721 $2.039
A law firm uses activity-based pricing. The company's annual activity pools and related information are as follows: Estimated Cost Driver Cost Driver Number of consultations Cost Pool Quantity Consultation consultations Administrative costs Client service $125.000 66.000 34.000 Admin labor hours Number of clients 200 6.000 labor hours 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? $1.442 $1,954 $721 $2.039
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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