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 $250 to determine the bid price. Since our average cost is only $2 235 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 Rctivity Coat Pool Activity Measure Total Activity Removing a bontos Thousands of square feet 800 thousand square foot Botimating and job setup 500 Jobs Working on noncoutine job Number of honroutine jobs 100 nonroutine jobs Other (organization austaining costs and idle capacity cost Note: The 100 nonroutine jobs are included in the total of 500 jobs. Both nonroutine jobs and routine Jobs require estimating and setup Number of jobs None Cost for the Year Wages and malaries Dimponal fees quipment depreciation On-uite supplies office expenses Licensing and insurance Votal cont 312,000 712,000 97,000 55,000 220.000 420,000 1,821,000 Other Distribution of resource Consumption Neron Activities Estimating Working on Romoving and Bob Honroutine Asbestos Setup Job Wagon and salaries 505 155 205 Disposal fees 08 404 Equiment depreciation 501 304 158 On-site wupplio 605 259 O expenses 106 40 156 conning and insurance 30 Total 1004 1009 100 04 254 09 35 TOO 1009 1004 Required: 1. Perform the Best-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. Req 1 Reg 2 Req 3A to 30 Perform the first stage allocation of costs to the activity cost pools. Removing asbestos Estimating and Job Setup Working on Nonroutine Jobs Other Total $ 0 0 0 Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost 0 0 0 $ 0 0 $ 0 $ 0 $ 0 Reg Reg 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A to 30 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. Req 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 1,000 Routine 2,000 Nonroutine square feet job square feet job 2,000 square feet job Total cost of the job Average Cost per thousand square feet