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Mereer Asbestos Removal Company removes potemtially toxic asbestes insulation and related products from buildings. There has been a long-5immering dispute between the company's estimator and

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Mereer Asbestos Removal Company removes potemtially toxic asbestes insulation and related products from buildings. There has been a long-5immering dispute between the company's estimator and the woek supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work, such as removal of asbostos insulation around heating pipes in older homes, and nonroutine work, such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nontoutine work is far more expensive than routine work and chould bear higher customer charges. The estimator sums up his position in this way: My job is to measure the area to be cleared of astbestos. As cirected by top management, I simply multply the square footage by $2.80 lo dotermine the bid price. Since our everage cost is only $2.585 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 an activity based costing study of all of its costs. Data from the activity-besed costing system follow: Note: The 100 nonroutine jobs are included in the total of 400 jobs. Both nonroutine jobs and routine jobs tequire estimating and setup. Note: The 100 nonroutine jobs are included in the total of 400 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. 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. a. A routine 1000-square-foot asbestos removij job. b. A routine 2,000-square feot asbestos remavat job. c. A nonroltine 2,000-square-foot asbestos removal job. Complete this question by entering your answers in the tabs below. Derform the first-stage allocstion of costs to the activity cost poir. Required: 1. Perform the first-stage allocotion of costs to the activity cost pools. 2. Compute the activity rates for the octivity cost pools 3. Using the activity reifes you have computod, determine the total cost and the awerage cost per thousand square foet of each of the following jobs according to the activity-based costing system 9. A routice 1,000 -square-foot astestos removaljob b. A routine 2.000-squite-foot astbestos removaljob. c. A nonroutine 2.000-square-foot asbestos remoud job. Complete this question by entering your answers in the tabs below. Compute the activity rates for the activity cont pools. 10ilowing jobs according to the acthity-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. Using the activity rates you have computed, dotermine the total cost and the average cost per thousand square fect of each of the following joos according to the activity-based costing system. (Rouind thie "Average Cost per thousand square feet" to ? decimal places.) a. A routine 1,000 -square-foot asbestos removal job. b. A routine 2,000-square-foot asbeltos removal job. c. A nonroutine 2,000-square-foot asbestos removal job

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