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Vance Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. The company's estimator has been involved in a long-inimening dispute with
Vance Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. The company's estimator has been involved in a long-inimening 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 hy $4,000 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 initated an ABC study of all of its costs Data from the ABC system follow Wages and salaries Disposal fees Equiprent depreciation 01-site supplies office expenses Licensing and insurance Distribution of Resource Consurption across Activity Cost Pouls Estinating working on Removing and Jan Non routine Asbestos Setup Johs Other Tatal 10 382 151 1881 TV 100 49 354 259 100 550 154 256 .39 5 188 100 356 154 1 ARE 50 48 18% IRAN Activity Cast Pool Removing asbestos Estinating and job setup Working on non-routine jobs Other Icosts of idle capacity and organization-sustaining costs) Activity Measure Thousands of square retres Number of jobs Number of non-routine jobs Not applicable; these costs are not allocated to jobs. Total Activity 599,989 12 2H0 jobs 25 ron-routine jobs Required 1. Perform the first stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a wherever it required.) Removing Asbestos Estimating Working an and Jab Non-routine Setup Jobs Other Totala 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 Vagas and alarks Lispatial fias| Equipment apreciation Craisa-ris LICHOCH TOXIC S 289, 669,99 80,098 60,638 190,ODE 370, car 51,589, Screen Shot 2021-03-05 at 4.39.04 PM Search 2. Compute the activity tales for the activity cost pools (Round your answers to 2 decimal places.) Activity Rate por thousand acuare metres Athly Cost Pool Remingsbestos NITI NU Working on non no.theloos per non ore 100
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