3 10 points eBook Mercer Asbestos Removal Company removes potential toxic asbestos Insulation and related products from buildings There has been a long sering dispute between the company's estimator and the work supervisors. The on-site supervisors claim that the estimations do not adequately distinguish between routine work, such as removal of asbestos Insulation around heating pipes in older homes, and nonvoutine work, such as removing asbestos contaminated celing base in industrial buildings. The on-site supervisors believe that onroutine work is far more expensive than routine work and should be higher customer charges. The estimator sums up his position in this way "Wyjob is to measure the area to be deared of asbestos As directed by top management simply multiply the square footage by $2.00 10 determine the bid price. Since our average cost is only $2.315 per square foot, that leaves enough Cushion to take care of the additional costs of narroutine work that shows up. Besides, is difficult to know what is routine or not routine until you actually start tearing things apart" To shed light on this controversy, the company initiated an activity-based costing study of Mofos costs Detrom the activity based costing system follow Activity Cost Pool Activity Measure Total Activity Removing asbestos Thousands of square feet 800 thousand square feet Estimating and job setup Number of jobs 500 jobs Working on noroutine Number of nonroutine 100 no routine jobs jobs jobs Other (organization sustaining costs and idle capacity costs) None Note: The 100 nonroutine Jobs are included in the total of 5e jobs. Both no routine jobs and routine Jobs require estimating and setup. Reference Costs for the Year Wages and salaries $360,000 Disposal fees 765,000 Equipment 90,000 depreciation On-site supplies 57.000 office expenses 270,000 Licensing and insurance 470,000 Total cost 52,628.cee Distribution of Resource Comption Across Activities Estimating working on Hemoving and Job Noroutine Asbestos Setup Jobs Other Total Wages and salaries 501 10 301 101 1001 Disposal fees -70% es Equipment 309 2001 depreciation 405 54 201 351100 On-site Supplies SON 3 104 es 100% office expenses 154 354 Licensing and 205 30 1001 Insurance 301 ses 2010 Red Pero the location of colectivos 2. Comfort to in the eyes you have come cost and most per thousand or feet of the consen A 1000 A2.000 Ano 2.000 Complete this question by entering your wars in the the below , Meg Reg A to 30 Perform the first stage location of costs to the activity cost poole. Estimating Woning Job 00 Norte Jobs Was das Dec Mentre OR Office ve To BE Idle capacity costs) None Note: The 100 monroutine jobs are included in the total of 500 jobs. Both no routine jobs and routine jobs require estimating and setup. Costs for the Year Wages and salaries 362.0 Disposal fees 765.000 Equipment depreciation 98,00 On-site supplies 57.100 office expenses 270,000 Licensing and Insurance 470,00 Total cost 12, aze, Distribution of Contres activities Estimating working on Raving and Job Noutin Astentes Set Other Total Wages and salaries Disposal fees 100 Equipment depreciation 40 54 2 Onsite supplies office ses 15 25 2 3 Licensing Insurance 2.Com . of get 000 2.000 Completely RA Perform the fronte Weges D 30 Both nonroutine jobs and routine jobs require estimating and setup. Costs for the Year Wages and salaries $ 360,000 Disposal fees 765,000 Equipment 98,000 depreciation On-site supplies 57,000 Office expenses 270,000 Licensing and insurance 470,000 Total cost $2,020,000 Distribution of Resource Consumption Across Activities Estimating Working on Removing and Job Non routine Asbestos Setup Jobs Other Total Wages and 50% 10 30% 10% 100% salaries Disposal fees 704 es 304 0% 100% Equipment 404 5 284 depreciation 35% 100% On-site 605 30% 194 supplies % 100 office expenses 154 354 204 30% 100% Licensing and insurance 304 es 50 20% 100% Required: 1. Perform the first stage allocation of costs to the activity cost pools 2. Compute the activity rates for the activity cost pools 3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of ench of the following jobs according to the activity-based costing system. a. A routine 1000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal job. CA nonroutine 2,000 square foot asbestos removal job Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req 3A to 3C Compute the activity rates for the activity cost pools. Activity Cost Pool Activity Rate Romoving asbestos per thousand square feet Estimating and job setup per job Working on nonroutine Jobs per nonroutine job M SE 3 point BOOK work and should beat higher customer charges. The estimator sums votis position in this way: "Wyjob is to measure the wrea to be deared of asbestos Asdrected by top management simply mully the square footage by $2.0 tu determine the bid price Since our average cost is only $215 per sort that we enough cushion to take care of the additional costs of onmoutine work that shows up Besides, ita dificult to know what is routine or routine until you actualy tearing things at To shed light on this controversy, the company in activity-based costing study of all of its costs. Data from the activity based costing system fofo Activity Cost Pool Activity Measure Total Activity Renoving asbestos Thousands of square thousand square Estimating and job setup Number of Jobs 500 jobs Working on non routine Number of honroutine 100 no routine 70 Jobs Jos Other (organization sustaining costs and Idte capacity costs) None Note: The 100 non routine jobs are included in the total of 500 Jobs. Both no routine jobs and routine jobs retire estimating and setup. 0 Reference Costs for the Year Wages and salaries $300,000 Disposal fees 765,000 Equipment depreciation 90.000 On-site supplies 57.000 office expenses 270,000 Licensing and insurance 470,000 Total cost 12.020,00 Distribution of Resource Centro Across Activities Estimating working on Renoving and job on routine Asbestos Setup Jobs Other Total Wages and salaries sen 105 301 101 1 Disposal fees 7 100 depreciation con 51 205 35 1001 On-site so supettes 30 101 100 office expenses 151 350 205 30 1001 Licensing and insurance je en sov 201 100 Required t Perform the stage of costs 2 Come for the costo 3 Using these you come the contro of each of the towing to the A1.000 beste routine 2.000 or betrol Anonine 2.000 Complete this question by entering your answers in the the below Heg Reg 2 hog JA Using the activity rates you have computed determine the total cost and the average cost pertrousand are feet of each of the following jobs according to the activity based casting system. (Round the rage cost per thouse for a. A routine 1.000-foot be removal job 1. A routine 2,000-square-foot asbestos remolo A non routine 2,000-square-foot asbestos removal Show less Heine ho 1.408 4 4,000 2.000 folosite AVR Cost per un Seal