Mercer Asbestos. Removal Company removes potentialy toxic asbestos insulation and related products from buildings, There has been a fong-simmering dispute between the compony's estimator and the work supervisors. The onsite supervisors claim that the estimators do not adequately distinguish between routine work. such as removal of asbestos insulaton around heating pipes in oldef hompes, and nonroutine work; such as removing osbestos-contominated ceiling plaster in industial buldings. The on-site superyisors believe that nongoutine work is far more expensive than routine work and should bear higher customer charges, The estimalor sumt up his position in this way. My job is to measure the area to be cleaced of asbestos As directe-d by top managechent. I sinply moliply the square footage by 52,50 to detemine the bid price. Since out average cost is only $2.235 per square foot, that leapes enough cushion to tahe care of the additional costs of nomroutine work that shows up. Besides, it is ditficult to lonow what is routine or nol foutine until you actually start learing things apart" To shed light on this controversy, the company inliated an actlvity,based costing study of ali of its costs. Data from the activity-based costing syctem follow: Note: The 109 nonroutine jobs are included in the totat of 500 jobs. Both nonroutine jobs and routine jobs require estimating and setup: Pequired: 2. Compute the-activity rates for the ictivity cost pools. 3. Using the bctivity rales you have computed, determine the toral cost and the averoge cost per thobsond square feet of each of the folloving jobs accoraing to the sctivity-bosed costing system. a. A routine 1,000-square-foot asbestos removol job. b. A routine 2,000-9quore-foot bibbetos removal job. E. A Aorroutine 2000 square-fogt asbestos removal job Complete this question by entertng your answers in the tabs below. Perfarm the first-stage alocation of costs to the activity cost pools. Complete this question by entering your answers in the tabs below. Compute the activity rates for the activity cost pools. Complete this question by entering your answers in the tabs below. 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 fob. b. A routine 2,000-square-foot asbestos removal job. c. A nonroutine 2,000-square-foot asbestos removal job. 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 ciaim that the estimators do not adequately distinguish between routine work. such as removal of asbestos insulation around heating pipes in older homes, ond nonroutine work, such as removing asbestos-contaminated celling ploster 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 $2.235 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 opart." To shed light on this controversy, the company initiated an activity-based costing study of all of its costs. Data from the octivity-bosed costing system follow 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 actlity 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. Perform the first-stage allocation of costs to the activity cost pools. Complete this question by entering your answers in the tabs below. Compute the activity rates for the activity cost pools. c. A nonroutine 2,000-square-foot asbestos removal job. Complete this question by entering your answers in the tabs below. Using the activity rates you have computed, determine the total cost and the avarage cost per thousand square foet of asch 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