its all one question

Problem 7.18 (Algo) Activity-Based Costing and Bidding on Jobs [LO7-2, LO7-3, LO7-4] Mercer Asbestos Removal Company removes potentlally toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company's estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and nonroutine work, such as removing asbestos-contaminated celling plaster in industrial bulldings. 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 -My job is to measure the area to be cleared of asbestos. As cirected by top management, I simply multiply the square footage by $2.60 to determine the bid price. Since our average cost is only $2.35 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine 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 activity-based costing study of all of its costs. Data from the activity-based costing system follow: Note: The 100 nonroutine jobs are included in the total of 500 jobs. Both nonroutine jobs and routine jobs require estimating and setup roblems (40pt) i) 1. Perform the first-stage aliocation of costs to the activity cost pools Required: 3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the 2. Compute the activity rates for the activity cost pools. following jobs according to the activity-based costing system. a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal fob. c. A nonroutine 2,000-5quare-foot asbestos removal job Complete this question by entering your answers in the tabs below. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the following jobs according to the activity-based costing system. (Round the "Average Cost per thousand square feet" to 2 decimal places.) a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal job. b. A routine 2,000 -square-foot asbestos removal jov. c. A nonroutine 2,000-square-foot asbestos removal job. Complete this question by entering your answers in the tabs below. Darfnrm the first-stage allocation of costs to the activity cost pools. Complete this question by entering your answers in the tabs below. Comoute the activity rates for the activity cost pools. Complete this question by entering your answers in the tabs below. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each decimal places.) a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal job. c. A nonroutine 2,000-square-foot asbestos removal job. Show less A Problem 7.18 (Algo) Activity-Based Costing and Bidding on Jobs [LO7-2, LO7-3, LO7-4] Mercer Asbestos Removal Company removes potentlally toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company's estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and nonroutine work, such as removing asbestos-contaminated celling plaster in industrial bulldings. 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 -My job is to measure the area to be cleared of asbestos. As cirected by top management, I simply multiply the square footage by $2.60 to determine the bid price. Since our average cost is only $2.35 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine 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 activity-based costing study of all of its costs. Data from the activity-based costing system follow: Note: The 100 nonroutine jobs are included in the total of 500 jobs. Both nonroutine jobs and routine jobs require estimating and setup roblems (40pt) i) 1. Perform the first-stage aliocation of costs to the activity cost pools Required: 3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the 2. Compute the activity rates for the activity cost pools. following jobs according to the activity-based costing system. a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal fob. c. A nonroutine 2,000-5quare-foot asbestos removal job Complete this question by entering your answers in the tabs below. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the following jobs according to the activity-based costing system. (Round the "Average Cost per thousand square feet" to 2 decimal places.) a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal job. b. A routine 2,000 -square-foot asbestos removal jov. c. A nonroutine 2,000-square-foot asbestos removal job. Complete this question by entering your answers in the tabs below. Darfnrm the first-stage allocation of costs to the activity cost pools. Complete this question by entering your answers in the tabs below. Comoute the activity rates for the activity cost pools. Complete this question by entering your answers in the tabs below. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each decimal places.) a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal job. c. A nonroutine 2,000-square-foot asbestos removal job. Show less A