Note: The $100$ nonroutine jobs are included in the total of $400$ jobs. Both nonroutine jobs and routine jobs require estimating and setup.

Costs for the Year

Wages and salaries $ $480,000$

Disposal fees $882,000$

Equipment depreciation $108,000$

On$-$site supplies $68,000$

Office expenses $380,000$

Licensing and insurance $580,000$

Total cost $ $2,498,000$

Distribution of Resource Consumption Across Activities

Removing Asbestos Estimating and Job Setup Working on nonroutine Jobs Other Total

Wages and salaries $50\%15\%20\%15\%100\%$

Disposal fees $70\%0\%30\%0\%100\%$

Equipment depreciation $40\%5\%20\%35\%100\%$

On$-$site supplies $70\%20\%10\%0\%100\%$

Office expenses $15\%35\%20\%30\%100\%$

Licensing and insurance $30\%0\%50\%20\%100\%$

Required:

Perform the first$-$stage allocation of costs to the activity cost pools.

Compute the activity rates for the activity cost pools.

Calculate 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 routine $1,000-$square$-$foot asbestos removal job.

A routine $2,000-$square$-$foot asbestos removal job.

A nonroutine $2,000-$square$-$foot asbestos removal job.