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 no routine work, such as removing asbestos contaminated ceiling ploster in industrial buildings. The on-site supervisors believe that noroutine work is for 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 simply multiply the square footage by $3.20 to determine the bid price. Since our average cost is only $2745 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 on activity based costing study of all of its costs. Data from the activity-based costing system follow V.com etty Total Aktivity novinaste Thousands were fout 300 thousand quare feet stating wetup Hur of 500 wurking on routine Muster of Monroutine 100 routine other organisation staining costs and le capacity costo) hone Note: The 100 ronroutine jobs are included in the total of 500 jobs. Both nonroutine Jobs and routine jobs require estimating and Setup for the Year and taler le Disposal fees Fint deration On supplies office .genes contine and that Totalcat $ 470,00 B. 110,000 40,00 330,000 370.000 $2,300,000 ont of OS ALVEIRE Einting Morking on teaving ant job huntine Asbeste Other a moltes Dip fees 100 at depreciation SON tos 255 ses ones sex of expert 103 405 sos Lid wnd in 20 Required 1. Perform the first stage allocation of costs to the activity cost pools 2. Compute the activity rates for the activity cost pool 3. Using the activity reites 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, 0 Aroutine 1000 square foot asbestos temove job b. A routine 2.000 square foot asbestos removal job Anoroutine 2.000 square foot esbestos removal job Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A to 3C Perform the first-stage allocation of costs to the activity cost pools. Removing asbestos Estimating and Job Setup Working on Nonroutine Other Total Jobs Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost Reg 1 Req2 > Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3A to 3C 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 Reg 1 Reg 2 Reg 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 square feet job square feet job Nonroutine 2,000 square feet job Total cost of the job Average cost per thousand square feet