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 $2.50 to determine the bid price. Since our average cost is only $2.01 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 Activity Cost Pool Activity Measure Total Activity Removing asbestos Thorasands of quare feet 850 thousand square foot Estimating and job setup Mamber of jobs 400 jobs Working on noroutine jobs Wamber of nonroutine jobs 100 nonroutine joba Other Corganization sustaining costs and idle capacity cota) More Note: The 100 routine jobs are included in the total of 400 jobs. Both no routine jobs and routine jobs require estimating and set Costs for the Year Pages and salaries Disposal for Equipment depreciation Otraite supplies Office expenses Licensing and insurance Total coat 308,000 700,000 90.000 50,000 210,000 410.000 $ 1.774.000 Working on Nontoutine Jobs Other Distribution of Resource Consumption Boross Activities Estimating Removing and Job Asbestos Setup Vape and maleriet 605 108 Disposal toes 705 0% Equipment depreciation 405 Onsite supplies 704 2016 office expenses 155 356 Licensing and murance 25% 208 308 30% 255 105 20% 505 Total 1005 1005 100% 1006 100% 1008 306 25% Required: 1. Perform the first stage allocation of costs to the activity cost pools. 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. Other Total Reg 1 Reg 2 Reg 3A to 3C Perform the first-stage allocation of costs to the activity cost pools. Removing Estimating Working on asbestos and Job Nonroutine Setup Jobs Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and Insurance Total cost Reg Reg 2 > 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 Reg 3A to 30 Compute the activity rates for the activity cost pools. Activity Cost Pool Activity Rate Removing asbestos per thousand square feet Estimating and job setup per job Working on nonroutine jobs per nonroutine job 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 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. C. A nonroutine 2,000-square-foot asbestos removal job. Show less Routine Routine Nonroutine 1,000 sq. ft. 2,000 sq. ft. 2,000 sq. ft. job job job Total cost of the job Average Cost per thousand square feet