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Mercer Asbestos Removal Company removes potentially toxic asbestos insulation from bulldings. There has been a iong-simmering dispute between the company's estimator and the work supervisors.

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Mercer Asbestos Removal Company removes potentially toxic asbestos insulation from bulldings. There has been a iong-simmering dispute between the company's estimator and the work supervisors. The on-site supervisors claim the estimators do not adequately distinguish between routine work, such as removing asbestos insulation around heating pipes in older homes, and nonroutine work such as removing asbestos-contaminated celling plaster in industrial buildings. The on-site supervisors belleve 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 to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $3.00 tio determine the bid price. Because our average cost is only $2.675 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work, Besides, a is difficult to know what is routine or not routine until you actually start tearing things apart," To shed light on this controversy, the compary gathered the following activity-based costing data: Note: The 100 nocroutine jobs are included in the total of 500 jobs. Both nonroutine jobs and routine jobs require estimating and setup. Required: 1. Perform the first-stage allocation of costs to the activity cost pools. 2. Compute the activily rates for the actimity cost pools. 3. Calculase the total cost and the average cost per thousand square feet of eoch of the following jobs according to the activiby-based costing system. a. A routine 1,000-square-foot asbestos removal job. b. A coutine 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. Ferform the first-stage aliocation of costs to the activify cost pools Mercer Asbestos Removal Company removes potentially toxic asbestos insulation from bulldings. There has been a long-simmering dispute between the company's estimator and the work supervisors. The on-ste supervisors claim the estimators do not adequately distinguish between routine work, such as removing asbestos insulation around heating pipes in oider homes, and nonroutine work, such as removing asbestos-contaminated celling plaster in industrial buildings. The on-site supervisors believe 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 $3.00 to determine the bid price. Because our average cost is only $2.675 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apar: To shed light on this controversy, the company gathered the following activity-based costing data: Note: The 100 nonroutine jobs are included in the total of 500 jobs. Both nonroutine jobs and routine jobs require estimating and setup. 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. Calculate the total cost and the average cost por 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 removel job. Complete this question by entering your answers in the tabs below. Compute the activity rates for the acturity cost poois Mercer Asbestos Removal Company removes potentially toxic asbestos insulation from buildings. There has been a iong-simmering dispute between the company's estimator and the work supervisors. The on-site supervisors claim the estimators do not adequately distinguish between routine work, such as removing asbestos insulation around heating pipes in oider homes, and nonroutine work. such as removing asbestos-contaminated celing plaster in industrial buildings. The on-site supervisors believe 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 $3.00 to determine the bid price. Because our average cost is only $2.675 per square foot that leaves enough cushion to take care of the additional costs of nonroutine work. 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 gathered the following activity-based costing data: Note: The 100 nonroutine jobs are included in the total of 500 jobs. Both nonroutine jobs and routine jobs require estimating and setup: Required: 1. Perform the first-stage allocasion of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. Calcutate the totat cost and the weroge cost per thousand square feat of each of the following jobs according to the activity based costing system. a. A routine 1,000 -square-foct astbestos removal job. b. A routine 2,000 -square-foot asteestos removal job. c. A nonreutine 2,000-square-loot asbestos removal job. Complete this question try entering your anwwers in the tabs below: Gosed coting system

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