Mercer Asbestos Removal Company removes potentially 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 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 $3.10 to determine the bid price. Since our average cost is only $2.855 per square foot, that leaves enough cushion to take care of the additional costs of nontoutine 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: 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 nonroutine jobs Number of nonroutine Jobs 100 no routine Jobs other organization-sustaining costs and idle capacity costs) None Note: The 100 monroutine Jobs are included in the total of soe jobs. Bath no routine jobs and routine jobs require estimating and setup Costs for the Year Wapes and salaries Disposal fees Equipment depreciation Onsite supplies Office expenses Licensing and insurance Total cost $ 450,000 820,000 110,000 65,000 350,000 550,000 $ 2,345.000 Distribution of Resource Concupton Across Activities Removing Estimating and Working on Asbestos Job Setup Nonroutine Jobs Other Total Other 103 0% Total 100% 100 Distribution of le source Consumption Across Activities Removing Estimating and Working on Asbestos Job Setup Nonroutine Jobs Wages and salaries 60% 103 20% Disposal fees 60% 23 40% Equipment 40% 5 depreciation 25% On-site supplies 70% 10% Office expenses 105 40x 15% Licensing and 25% es Insurance 60% 38% 100X 203 ex 35% 100% 100% 15% 10 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 each 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. c. A nonroutine 2.000-square-foot asbestos removal job Complete this question by entering your answers in the tabs below. Req1 Reg2 Rea 3A to 30 Perform the first stage allocation of costs to the activity cost pools Estimating Removing Working on and Job Nonroutine asbestos Setup Jobs Wages and salores Disposal food Other Total DO Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A to 30 Other Total $ 0 Perform the first stage allocation of costs to the activity cost pools. Estimating Working on Removing asbestos and Job Nonroutine Satup Jobs Wages and salaries Disposales Equipment depreciation On-site supplies Orice expenses Licensing and insurance Total cost $ 05 0 $ os 0 0 0 0 0 $ Req2 > 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 each of the 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 job. c. A nonroutine 2.000 square foot asbestos removal job Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A to 30 Compute the activity rates for the activity cost pools. Activity Cost Pool Activity Rate Removing esboston per thousand square feet Estimating and job setup per job Working on monroutine jobs porno routine job 3. 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. a. A routine 1000-square-foot asbestos temoval job. b. A routine 2,000 square foot asbestos removal job Anonroutine 2,000-square-foot asbestos removal job Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A 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 system. (Round the "Average cost per thousand square feet" to 2 dcimal 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-squarefoot asbestos removal Job. Show Routine Routine Nonroutine 1,000 sq. 12,000 sq. 1. 2.000 ng Job Job Job Total cost of the job Average Cost per thousand square feet Req2 ROBA