Muldoon’s Window Washing Company handles basic window washing, power washing, and light window maintenance. It divides its company into the following activities and cost pools.

REQUIRED:

a. Calculate the activity cost rates for each of the cost pools.

b. One customer has 20 windows washed, two hours of power washing, and one hour of minor repair. It took two invoices before the customer paid with one check, which was processed in Accounting. What is the total cost of servicing this customer?

Transcribed Image Text:

Driver Activity Driver Cost Frequency Window washing Number of windows washed 250,000 $312,500 Power washing Hours of washing 2,000 $25,000 Small repairs Hours of repair 2,000 $30,000 Accounting Customer invoices 10,000 $60,000 Sales Orders taken 5,000 $75,000