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