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 nontoutine 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 $300 to determine the bid price. Since our average cost is only $2755 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 A Cost Pool Activity Menu TOE Activity Removing asbestos Thousands of square feet Be thousand square feet Estimating and job setup Number of jobs 400 jobs Working on a routine jobs Number of nonroutine Jobs 100 norautint Jobs Other Companization custaining costs and Idle capacity costs) None Note: The 100 nonroutine Jobs are included in the total of 100 jobs. Both nonroutine jobs and routine Jobs require estimating and setup costs for the Year Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and Insurance Total cost 420,000 14.) 96.000 62.0 320,00 520.000 $ 2,212,000 Bistribution of our consumption across activities Estimating Removing and Job Asbestos Setup Wings and salaries 15% Disposal fees co ex Equipoent depreciation 40 S* On-site supelles COR office expenses 155 Licensing and insurance 255 es Working on Noncoutine Jobs 201 40% 20 IN 2015 60% Other 15 03 355 Total 100% 100% 100% 100% Leon TO 0 Required: 1. Perform the first stage allocation of costs to the activity cost pools 2. Compute the activity rates for the activity cost pool Removing Estimating and Tob Setup 15% es 5% Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance 58% 60% 40x GOK 15% 25% Working on Nonroutine Jobs 20% 40% 20% 10% 20% Gex Other 15% ox 35% OX 30% Total 100% 100% 100% 100% 100% 100% 353 X 15% 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 CA nonroutine 2,000 square foot asbestos removal job. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Red 3A to 30 Other Total 0 Perform the first stage allocation of costs to the activity cost pools. Removing Estimating Working on asbestos and Job Nonroutine Setup Jobs Wagon and station Disposal for Equipment depreciation On site supplies Office expenses Licensing and insurance Total cost $ 05 05 0 s 0 0 0 . 05 0 Req2 15% Distribution of Resource Consumption Across Activities Estimating Removing and Job Asbestos Setup Wages and salaries sex Disposal fees 60% ex Equipment depreciation 4ex 5% on-site supplies 60% 30x office expenses 15% 35% Licensing and insurance 25% 0% Working on Honroutine Jobs 20% 40X 20% 10X 20% 60% Other 15% ex 35% ex 3ex 15% Total 100% 100% 100% 1893 100X 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 ea 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 Anonroutine 2,000 square foot asbestos removal job Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 R 3A to 30 Compute the activity rates for the activity cost pools Activity Cost Pool Removing asbestos Estimating and job setup Worldng on nonroutine jobs Activity Rate per thousand square feet por job por nonroutine job Nonroutine Jobs 20% Removing Asbestos sex 60% 40% 60% 15% 25% Wages and salaries Disposal fees Equipment depreciation On-site supplies office expenses Licensing and insurance and Job Setup 15% 0% 5% 30% 35% Other 15% ex 35% 2ex 10% 20% 60% Total 100% 100% 100% 100X 10X 100% 30% 15% 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 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 Rog 2 Reg JA to 3 Uning 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 foot" to 2 decimal places) a. A routine 1,000-square-foot abos 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 Routing 1,000 sq.ft. 2,000 sqft Job Job Nontouting 2,000 sq.ft job Total cost of the job Average Cost per thousand square feet & Reg 2