Mercer Asbestos Removal Company removes potentlally toxic asbestos Insulation and related products from bulldings. There has been a long-simmering dispute between the company's est/mator and the work supervisors. The on-site supervlsors 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 celling 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 $2.50 to determine the bid price. Since our average cost is only $2.435 per square foot, that leaves enough cushlon 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 initlated an actlilty-based costing study of all of Its costs. Data from the actlivity-based 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 actlivity cost pools. 2. Compute the actlivity rates for the actlvity cost pools. 3. Using the actlvity 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 actlivity-based costing system. a. A routline 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