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 beleve that nonmoutine work is far more expensive than routine work and should be higher customer charges. The estimator sus up his position in this way"Myob is to measure the area to be cleared of asbestos. As directed by top management simply mutoly the square footage by $2.50 to determine the bid price. Since our average cost is only $2.175 per suare foot that leaves enough cushion to take care of the additional costs of no routine work that shows up. Besides, tisicult 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 twity Coat Tool Total Activity and are feet Eutting and job etap 100 Date Otoritate conta Note The 100 routine jos se included in the total of 500 job. Toth Sorties and Costa for the Team Distribution of S ource Consumption Aero Ativities Estimating Working on Hat dapat la 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 suare foot asbestos removal job. b. A routine 2,000 square foot asbestos removal job. A nonroutine 2000 square foot asbestos removal job. Complete this question by entering your answers in the tabs below. Ret 30 Perform the first stage allocation of costs to the activity cost pools betes and Job Nontotine Other Total Set Die som er ples O Licensing and 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 beleve that nonmoutine work is far more expensive than routine work and should be higher customer charges. The estimator sus up his position in this way"Myob is to measure the area to be cleared of asbestos. As directed by top management simply mutoly the square footage by $2.50 to determine the bid price. Since our average cost is only $2.175 per suare foot that leaves enough cushion to take care of the additional costs of no routine work that shows up. Besides, tisicult 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 twity Coat Tool Total Activity and are feet Eutting and job etap 100 Date Otoritate conta Note The 100 routine jos se included in the total of 500 job. Toth Sorties and Costa for the Team Distribution of S ource Consumption Aero Ativities Estimating Working on Hat dapat la 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 suare foot asbestos removal job. b. A routine 2,000 square foot asbestos removal job. A nonroutine 2000 square foot asbestos removal job. Complete this question by entering your answers in the tabs below. Ret 30 Perform the first stage allocation of costs to the activity cost pools betes and Job Nontotine Other Total Set Die som er ples O Licensing and
