1. A law firm uses activity-based pricing. The company's 2019s activity pools are as follows:

The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer?
2. Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below:

If all costs were assigned to customers based on the number of items ordered, what would be the cost per item ordered?

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Cost Pool Annual Estlmated Cost Cost Drlver Annual Drlver 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 Cost Pool Annual Cost Cost Drlver Annual Drlver Quantity Processing electronic orders 1,000,000 Number of orders Processing non-electronic orders $2.000,000 Number of orders Picking orders Packaging orders 500,000 400,000 $3,000,000 Number of different products ordered 800,000 S1,500,000 Number of items ordered $2,000,000 Number of returns 50,000,000 Returns 50,000