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Mercebe Removal Company asbestos son nated products from dings. There is sommering dispute between the company's water and the work supervision. The contaminated celerini buldings. These superiore a routine workean routine work and when higher customer charpe. The stor some photos ways to more the area tebe daired of best Bride by to management imply the footage by S280 to the bidro Sirocor average cost $2.75 per reboot w ustion to take candleston cols of torte Oshows beide af to know what to the routine until you actually starring To shed on the cover the company and bud costog study of all of it costs. Data from the city based costing system folow Cost Title Pamage Thone 100 | Enged fo 500 Web Ne 100 Oro Recher. The 100 considera joten en housed in the war 1900 je. Bon onnisne pobie and routica obe require antimating and how Www 200.000 700.000 50.000 200.000 90.000 Of 400.000 Con Across Act W son 10 De 10 0% 3 ON SON 301 10 DOL 100 100 Required: 1. Perform the first-stage allocation of costs to the activity cost pools. Working on Estimating Removing and Asbestos Job Setup Nonroutine Jobs Other Total Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost 2. Compute the activity rates for the activity cost pools Activity Rate Activity Cost Pool Removing asbestos Estimating and job setup Working on nonroutine jobs per thousand square feet per job per nonroutine job 3. Laing 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, Thousand square feet to 2 decimal places) Aroutie 1,000 square foot asbesto removal job. Total cost of the job Awwage.com per thousand quare feet b. A routine 2.000-600 stewostem 06 Titab Averso Contendre c. Anonrovine 7.000 square foot asbestos tempo Total cost of the Age Couter usando 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 nonroutine work such as removing asbestos contaminated ceiling 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 $2.50 to determine the bid price. Since our average cost is only $2.175 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 Removing asbestos Estimating and job setup Working on noroutine jobs Other costs of idle capacity and organization-sustaining costs) Activity Measure Thousands of square feet Number of jobs Number of nonroutine jobs Total Activity 800 thousand square feet 500 jobs 100 nonroutine jobs None Note: The 100 no routine 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 stars Disposales Equipment depreciation On-site supplies Office expenses Lerving and insurance Total cost $ 300,000 700,000 90.000 50,000 200,000 400,000 $ 1.740.000 Dintribution of resource Consumption Acrows Activities Working on Nonroutine Jobs Other 10% 0% 10% Removing Eating and Asbestos Job Setup 50% 10% 50% 096 5% 60% 30% 10% 354 30% 0% 40% Wages and sales Disposals Equipment depreciation On se supplies O expenses Licensing and insurance 35% 20% 10% 25% 50% Tot 100% 100% 100% 100% 100% 100% 0% 30% 204