Problem 7-20 Activity. Based Costing and Bidding on Jobs [LO2, LO3] Vence Asbestos Removal Compary remores potentialy toxic asbestos insulation and related products from buldings. The company's estimator has been involved in a long-simmering dspute with the on-site work supervisors. The an-site supervisers claim that the estimator does not adequately distinglish between toutine work such as removal of asbestos insulation asound beating pipes in older homes, and non-rouline work, such as removing asbestoscontaminated celing plaster in industrial buildings. The on-ste supervisors beleve that non-routine woek is far more expensive than rouline work and should bear higher customer charges. The estimetor sums up his position in this way: TMy job is to measure the area to be cleared of asbestos. As directed by top management, 1 simply mutiply the square metres by $1,400 per thousand square metres to determine the bid peice. Since our average cost is only $3,400 per thousand square metres, that leeves enough cushion to take care of the atditionel costs of non-routine work that shows up. Besides, it is dificult to know what is routine or not routine until you actually start tearing things apart" To shed ight on this controversy, the company initated an ABC study of all of is costs. Data from the ABC system tallow: "The total number of jobs includes non-routine jobs as well as routine jobs. Non-routine jobs as well as routine jobs require estimating and setup work: Required 1. Perform the first:stage allocation of costs to the activity cost pools. (Do not ieave any empty spaces; input a 0 wherever it ls required.) 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) 3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square metres of each of the following jobs according to the ABC system: a. A routine 1,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.) b. A routine 2,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.) c. A non-routine 1,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.)