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please solve all parts properly Problem 7-20 Activity-Based Costing and Bidding on Jobs [LO2, LO3] Nance Asbestos Removal Compary removes potentially toxic asbestos insulation and

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Problem 7-20 Activity-Based Costing and Bidding on Jobs [LO2, LO3] Nance Asbestos Removal Compary removes potentially toxic asbestos insulation and related products from buildings. The compariy's istimator has been involved in a long stmmering dispule with the on-site work supervisors. The on-sile supervisors claim that the estimator does not adequately distinguish between routine woik, such as removal of asbestos insulation around heating pipes in oider fomes, and non-routine work, such as removing asbestos-contaminated celiting plaster in industrial buildings. The on-site supervisars pelleve that non-routine work is far more expensive than routine work and should bear higher customer charges. The estimator sums ip his position in this way: "My job is to measure the area to be cleared of asbestos. As directed by top inanagement, I simply multiply. the square metres by $5,000 per thousand square metres to defermine the bid price. Since our average cost is only $4,000 per fhousand square metres, that leaves enough cushion to take care of the additional costs of non-routine work that shows ip Besides. it 5 ditticult to know what is routine or not routine until you actually start tearing things apart:" Io shed ligtit on this controversy, the company inatiated an ABC stucty of all of its cosis. Data from the ABC system follow: The fotal number of jobs includes non-routine jobs as well as routine jobs. Non-ioutine jobs as well as routine jobs recaure estimating hind setup work. Pequired: 7. Perform the first-stage aflocation of costs to the activity cost pools, (Do not leave any empty spoces; input a 0 wharevar it is required.) 2. Compute the activity rates for the activity cost pools, (Round your answers to 2 decimal ploces) 1. Using the activity rates you have computed, determine the total cost and the average cost per thousand square metins of each af he following jobs according to the ABC system: A routine 2.000 -square-metre asbestos removal job. (hound your enswern to 2 decimal pleces.) A routine 4,000 -square metre asbestos resioval jab. (Round your onswers to 2 decimal placus) 2. A routine 4,000-square-metre asbestos removal job. (Round your answers to 2 decimial places.) c. A non-routine 2,000-square-metre asbestos removal job. (Round your answers to 2 decimal ploces.) 4. This part of the question is not part of your Connect assignment

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