Mercer Asbestos Removal Company removes potentially to die 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 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, "My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $4 20 to determine the bid price. Since our average cost is only $290 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 insated an activity-based costing study of all of its costs. Data from the activity based costing system follow. Activity Cost Poel Activity Metre Total Activity Removing asbestos Thousands of square feet 500 thousand square feet Estheating and job setup Number of 10 400 Jobs Horiding on routine jobs Number of noroutines 100 routine jobs Other (organisationsstating costs and idle capacity costs) None Note: The 100 routine jobs are included in the total of 40 Jobs both routine Jobs and routine Jobs require estimating and setup. Cists for the Year Wages and salaries Disposal fees Equipment Depreciation On-site supplies Office penses Licensing Inne Total cost 431,000 713,000 104,000 65,000 330,000 510.000 $ 2,171,000 ex Distribution of coure Contores Activities Demoving statin Asbestos Working on Job See Mages and salaries Martin Jobs 201 Osposal feel Equipment 01 depreciation SOL 1 25 Onsite sulle 70% Office 20 1 10% Licensing and 252 Insurance 203 5 otten Total 13 100 ex 1 Tags 1001 10 300 100% 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 actity 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, a. A routine 1000-square-foot asbestos removal Job. b. A routine 2000-square-foot asbestos removal job, c. A nonroutine 2000-square foot asbestos removal job. Complete this question by entering your answers in the tabs below. Req: Reg 2 Req 3A to JC Other Total Perform the first-stage allocation of costs to the activity cost pools. Removing Estimating Working on and Job Nonroutine asbestos Setup Jobs Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost Rey Reg 2 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A LO 3C Compute the activity rates for the activity cost pools. Activity Cost Pool Removing asbestos Estimating and job setup Working on nonroutine jobs Activity Rate per thousand square feet per job per nonroutine job Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg JA to 30 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 systern. (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. c. A nonroutine 2,000-square-foot asbestos removal job. Show less Routine Routine Nonroutine 1,000 sq ft 2,000 sq. It 2,000 sq ft job ob job Total cost of the job Average Cost per thousand square feet Reg2 Re