A law firm uses activity-based pricing the companys, Ask an Expert

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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

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