TOP URGENT
Answer is complete and correct. Activity Cost Pool Removingsbestos Estimating and job setup Working on non outine jobs Activity Rate S $1,558.00 per thousand scurre metres s 375.00 pero S 19,000.00 per outine Vance Asbestos Removal Company removes potentially toxic asbestos Insulation and related products from buildings. The company's estimator has been involved in a long-simmering dispute with the on-site work supervisors. The on-site supervisors claim that the estimator does not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and non-routine work, such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that non-routine 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 metres by S4,000 per thousand square metres to determine the bid price. Since our average cost is only $3.000 per thousand square metres, that leaves enough cushion to take care of the additional costs of non-routine 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 ABC study of all of its costs. Data from the ABC system follow. Activity Cost Pool Activity Measure Total Activity Removing asbestos Thousands of square metres Estimating and job setup Number of Jobs 280 Jobs Working on non-routine Jobs Number of non-routine Jobs 35 on-routine Jobs Other (costs of scle capacity and Not applicable; these costs are not organization sustaining costs) 11ocated to jobs. 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 1000-square-metre asbestos removal Job (Round your answers to 2 decimal places.) 5,2 Answer is complete but not entirely correct. "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. Total cost of the job Average cost per thousand square metres 2,983.00 2,083.0D 5 Wapes and starte Disposal ters Equipment depreciation On-site supplies De expenses Licensing and insurance Total cost $ 200,000 800,00 30.000 60.000 100,00 370.000 , $1,500,000 b. A routine 2,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.) . 2 ) Answer is complete but not entirely correct Total cost of the job Cost per thousand square metres $ 3,461.00 S 1,820.50 wares and salaries Disposal teus Equipement depreciation On-site supplies Office expenses Licensing med insurmice Distribution of tessure Consumption POS Activity Cost Pools Removing Estimating and Estimating and working on Non Asbestos Job Setup routine Jobs Other 458 18% 155 pex 30% 8 49 ex 35 25% 55% 15% 255 5 105 485 35% 15% SON AN 49 10 Tota! 1095 100% 1ee 1005 100 DON C. A non-routine 1,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.) -. Answer is complete but not entirely correct. Requirect 1. Perform the first stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; Input a wherever it is required.) Total cost of the job Cost per thousand square metres 22.039.00 $ S 22.039.00 Answer is complete and correct. Estimating and Job Setup 20,000 0 Wapes and salaries Disposal fees Equiment depreciation On-site supplies Otice penses Licensing and insurance Total cost Removing Asbestos 5 90.000 420.000 32.000 33.000 19.000 185.000 $ 779.000 Working on Non-routine Other Totals Jobs 60.000 30.000 200.000 180.000 0 600.000 26000 20.000 60000 15.000 3.000 50 000 66.500 28.500 190,000 148.000 37.000 370,000 5 497,500 S $ 118.500 1.500.000 9.000 75,000 $ 105,000
