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 $4,800 per thousand square metres to determine the bid price. Since our average cost is only $3,800 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 500,000 2 Estimating and job setup Number of jobs 380 jobs Working on non-routine jobs Number of non-routine jobs 28 non-routine jobs Other costs of idle capacity and Not applicable; these costs are not organization-sustaining costs) allocated to jobs. 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. Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost $ 280,000 720,000 104,000 76,000 254,000 466,000 $1,900,000 Distribution of Resource Consumption across Activity Cost Pools Removing Estimating and Working on Non- Asbestos Job Setup routine Jobs Other 456 104 301 158 709 30 489 O 354 254 555 159 254 59 1e 405 355 155 50 es 400 10 Total lees 100 teos 1801 1ees 100 Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance !! Next > Required 1. Perform the tinut stage alocation of costs to the activity cost pools (Do not leave any empty spaces: input a wherever it in required.) Wages and sales Doors Equipment depreciation On aito Office expenses Liising and insurance Removing Estimating and Working on Non Asbestos Jeb Betu routine Jobs Other Totals 125000 26,000 54.000 5 42.000 200.000 504000 0 216.000 0 720.000 41.600 0 36400 26,000 104000 41500 11.400 TR000 3.800 70.000 25.400 101.000 1.000 3,100 254,000 233.000 0 166.400 40.000 460,000 $ 971105 1410005 650 700 16.500 1.200,000 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places) Activity Cost Pool Removingsbestos Estimating and stop Working on non-routine jobs Activity Rata per found our mare per per non routine job 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) 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) Total cost of the job Average cost per thousand square metres b. A routine 2.000 square metre asbestos removal job. (Round your answers to 2 decimal places) Yo cost of the Cost per thousand quare metres c. A non routine 1.000 square metre asbestos removal job. (Round your answers to 2 decimal places) Total cost of the job Cost per thousand we metres