Sullivan’s Auto Repair does small repair jobs on automobiles, including oil changes, brake jobs, and tire repair. 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 needs an oil change, one tire repaired, radiator fluid, which takes five minutes to add to the car, and new brake shoes, which take half an hour to put on. What is the total cost of servicing this customer?

Transcribed Image Text:

Driver Activity Driver Cost Frequency Oil changes Number of oil changes done 10,000 $100,000 Brake repairs Hours of repair 2,000 $50,000 Tire repairs Tires repaired $40,000 5,000 Radiator repairs Hours of repair 1,000 $25,000 Customer service Number of customers 5,000 $30,000