Please provide answers and explainations if possible.
Mercer Asbestos Removal Company removes potential toc asbestos insulation and related products from buldings. There has been a long timmering 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 insation 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 nonroutine work is for 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 simply multiply the square footage by $3.00 to determine the bid price. Since our average cost is only $2675 per square foot that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides, it is dcult to know what is routine or not routine until you actually start tearing things apart To thed ight on this controversy, the company initiated an activity-based costing study of all of its costs Data from the activitysed costing system follow Activity Control Activity Total activity Rumoving asbestos Thou of Stare feet 300 thousand are fut stating and Jobs of Jobs se fos Working on toroutines Number of routine 100 routine other organization-uttaining costs and le capacity conta) None Note The 100 nonroutine jobs are included in the total of 500 jobs. Both nonroutine jobs and routine jobs require estimating and setup 3.414,000 . Costs for the year and are Disposal fees Coulent depreciation site wolle of E and insurance 310.00 310 10 Distribution Cross Active Estimating in Asbe Set Job Oh and salaris 10 30 Disposal 30 SON Louiment depreciation 25 Sex A158 site sunt 30 10 Of wees 13 255 100 Licence Required: 1. Perform the first stage allocation of costs to the activity cost pools 2. Compute the activity rates for the activity Coutools 2. Using the activity toes you have computed determine the total cost and the average cost per thousand soare feet of each of the following jobs according to the activity based costing system A routine 1000-square-foot asbestos removal job b. A routine 2000-square-foot asbestos removal job CA noroutine 2000-square-foot asbestos removalo Complete the question bytering your in the tabs below A te Perform the librage location of cute to the action cost pech Eingand Wago O os Sub Wages Course Reg 2 > 10 Complete this question by entering your whers in the tabs below 2 Me 2 to 3C Perform the instage allocation of costs to the activity costo Reaving Sta Estimating Job Set Working en Norwe Jobs Total Who was Eco 0 re 1 os 0 3 Reg 2 >
