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Mercer Asbestos Remaval Company removes potentialy toxic osbestos Insulation from bulldings. There has been a long - simmering dispute between the company's estimstor and the
Mercer Asbestos Remaval Company removes potentialy toxic osbestos Insulation from bulldings. There has been a longsimmering dispute between the company's estimstor and the work supervisors. The ansite supervisors clalm the estimators do not adequately distingulsh between routine work, such as removing asbestos Insulation around heating plpee in older homes, snd nonroutine work, such as removing asbestoscontaminsted celling plaster in industrial buldings. The onalte supensors believe nonroutine work is for more expenalve than routine work and should bear higher customer charges. The eatmotor sums up his position In this woy. My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $ to determine the bid price. Because our averoge cost ls only $ per square foot, that leaves enough eushlon to take care of the additional coste of nonroutine work. Besides, it is dificult to know what is routine or not routine untl you actually start tearing things opart"
To shed light on thls controversy, the company gathered the following actvitybased costing data:
Activity Cost Pool
Rectoving asbestos
Estinsting and job setup
working on norroutine jobs
other organizationsustalning costs and
caparity costs
Actlvity Norune
Thousinds of squals fisit
Muter of jos
Metwer of rorritutine jobs:
None
Note: The nonroutine jobs are included in the total of jobs. Both nonroutine jobe and routine jobs require estimating and setup.
Costs for the Year
tabletable$
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