A law firm uses activity-based pricing. The company's activity pools are as follows:
Cost Pool Annual Estimated Cost
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?© BrainMass Inc. brainmass.com April 4, 2020, 1:09 am ad1c9bdddf
First lets compute the cost per activity (Cost divided by the number of ...
The solution computes additional cost for a law firm using activity based costing.