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I need help with this question Vance Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. The company's estimator has been

I need help with this question

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Vance Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. The company's estimator has been involved in a long-simmering dispute with the on-site work supervisors. The on-site supervisors claim that the estimator does not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and non-routine work, such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: "Myjob is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square metres by $4,600 per thousand square metres to determine the bid price. Since our average cost is only $3,600 per thousand square metres, that leaves enough cushion to take care ofthe additional costs of non-routine work that shows up. Besides, it 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 ABC study of all of its costs. Data from the ABC system follow: Activity Cost Pool Activity Measure Total Activity Removing asbestos Thousands of square metres 500,000 m2 Estimating and job setup Number of jobs 220 jobs* Working on non-routine jobs Number of nonroutine jobs 25 non-routine jobs other (costs of idle capacity and Not applicable; these costs are not organizationsustaining costs) allocated to jobs. * The total number ofjobs includes non-routinejobs as well as routinejobs. Non-routinejobs as well as routine jobs require estimating and setup work. Wages and salaries $ 260,000 Disposal fees 690,000 Equipment depreciation 93,000 Onsite supplies 72,000 Office expenses 238,000 Licensing and insurance 4421000 Total cost $1,800,000 Wages and salaries Disposal fees Equipment depreciation On-site supplies office expenses Licensing and insurance Removing Estimating and Asbestos Job Setup 40% 10% 75% 0% 45% 0% 50% 15% 10% 40% 50% 0% Distribution of Resource Consumption across Activity Cost Pools Working on Non- routine Jobs 35% 25% 40% 25% 30% 45% Other 15% 0% 15% 10% 20% 5% Total 100% 100% 100% 100% 100% 100% Required: 1. Perform the rststage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.) Wages and salaries Disposal fees Equipment depreciation On-site supplies Ofce expenses Licensing and insurance Total cost $ 132, 000 $ 591 000 $ mn __- m 0_0-0 130,600 $ 1 H800 000 $ 260,000 690,000 98,000 72,000 238,000 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Removing asbestos $ 1,892.80 per thousand square metres Estimating and job setup EA 600.00 per job Working on non-routine jobs $ 23,640.00 per non-routine job 3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square metres of each of the following jobs according to the ABC system: a. A routine 2,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.) Total cost of the job $ 2,492.80 Average cost per thousand square metres $ 1,246.40 b. A routine 4,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.) Total cost of the job Cost per thousand square metresc. A non-routine 2,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.) Total cost of the job Cost per thousand square metres

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