Required: 1. Perform the firststage allocation of costs to the activityr 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 activitybased costing system. a. A routine LOUD-squarefoot asbestos removaljob b. A routine EDGEsquarefoot asbestos removal job. c. A nonroutine 2,UGDsguare-foot asbestos removal job. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A to 3!: Perform the rst-stage allocation of costs to the activity cost pools. We ges and salaries Dis posal fees Eguipm ent depreciation Cin-site supplies Cif'lice expenses Licensing and insurance Total cost Mercer Asbestos Removal lCompany removes potentially toxic asbestos insulation and related products from buildings. There has been a longsimmering dispute between the company's estimator and the work supervisors. The onsite 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 nonroutine work, such as removing asbestoscontaminated ceiling plaster in industrial buildings. The onsite 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: \"Myjob is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $3.60 to determine the bid price. Since our average cost is only $2.6?5 per square foot. that leaves enough cushion to take care ofthe additional costs of nonroutine work that shows up. Besides. it is difficultto know what is routine or not routine until you actually start tearing things apart." To shed light on this controversy. the company initiated an activitybased costing study of all of its costs. Data from the activitybased costing system follow: Activity Cost Pool Activity Measure Total Activity Removing asbestos Thousands of square feet 866 thousand square feet Estimating and job setup Number of jobs 566 jobs working on nonroutine jobs Number of nonroutine jobs 166 nonroutine jobs Other (organization-sustaining costs and idle capacity costs} None Note: The 166 nonroutine jobs are included in the total of 566 jobs. Both nonroutine jobs and routine jobs require estimating and setup. Costs for the Year wages and salaries $ 423,666 Disposal fees 862,666 Equipment depreciation 96,666 Onsite supplies 62,666 Office expenses 326,666 Licensing and insurance 516,999 Total cost $ 2:213:699 ' Oistribution of Resource Consumption Across Activities Estimating Norking on Removing and Job Nonroutine Asbestos Eetup Jobs Other Total wages and salaries 56% 16% 36% 16% 166% Disposal fees ?6% 6% 36% 6% 166% Equipment depreciation 56% 16% 15% 25% 166% Onsite supplies 66% 36% 16% 6% 166% Office expenses 16% 35% 25% 36% 166% Licensing and insurance 25% 6% 66% 15% 166%