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    Allocation Cost Based on Activity Based Costing

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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?

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    Solution Preview

    First lets compute the cost per activity (Cost divided by the number of ...

    Solution Summary

    The solution computes additional cost for a law firm using activity based costing.