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please place in chart format like answer, req 1,2,3 Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has
please place in chart format like answer, req 1,2,3
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 claim that the estimators do not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and nontoutine 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 $3.20 to determine the bid price. Since our average cost is only $2.745 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-based costing system follow: Activity Cost Pool Activity Measure Total Activity Renoving asbestos Thousands of square feet 800 thousand square feet Estimating and job setup Number of jobs 500 jobs Working on nonroutine jobs Number of nonroutine jobs 100 nonroutine jobs Other organization sustaining costs and idle capacity costs) None Note: The 100 nonroutine jobs are included in the total of 500 jobs, Both nonroutine jobs and routine jobs require estimating and setup Costs for the Year Wages and salaries Disposal fees attad $ 470,000 501,000 110,000 Note: The 100 nonroutine jobs are included in the total of 500 jobs. Both non routine jobs and routine jobs require estimating and setup Cost for the Year Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost 5 470,000 1,000 110,000 68,000 370,000 570.000 $ 2,309,000 Total Other 104 100% Distribution of Resource Consumption across Activities Estimating Working on Hemvig and Joh toroutine Asbestos Setup Jobs Wages and salaries 10% Disposal fees ox Equipment depreciation 505 105 155 Orite supplies GO 25 office expenses 103 155 Licensing and insurance 30% 50% ses 100 100% 200 100% 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 1000 square foot asbestos removal job. b. A routine 2,000 square foot asbestos removal job. Prey 8 of 9 Next > Check 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 nontoutine 2,000-square foot asbestos removal job Complete this question by entering your answers in the tabs below. Reg 1 Red 2 Reg JA to 30 Perform the first stage allocation of costs to the activity contpooks Other Working on Norroutine Jobs Removing asbestos Total Estimating and Job Setup 0 0 0 0 Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost 0 05 0$ 05 0 $ Prey 8 of 9 Next > di using activity rates you have computed determine the total cost and the average cost per thousand square feet of each of the following fobs according to the activity based costing system a. A routine 1,000 square-foot asbestos removal job 6. 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. Reg 1 Reg 2 Reg 3A to 30 Compute the activity rates for the activity cost pools. Activity Cost Pool Removing asbestos Estimating and job setup Working on nonroutine jobs Activity Rate per thousand square feet per job per nonroutine job Req 3A to 3C > Step by Step Solution
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