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Vance Asbestos Removal Company removes potentialy toxic asbestos insulation and related products from buidings. The company's estimator has been involved in a long-simmering dispute with

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Vance Asbestos Removal Company removes potentialy toxic asbestos insulation and related products from buidings. 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 celing plaster in industrial bulldings. The on-ste supervisors believe that non-routine work is far more expensive than routine work and should bear highet 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 $4,000 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-foutine 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 The total number of jobs includes non-routine jobs as well as routine jobs. Non-routine jobs as well as routine jobs require estumating and setup work. Required: 1. Perform the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spoces; input o 0 wherever it is required.) 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 metres of each of the following jobs according to the ABC system: a. A routine 2,000-square-metre asbestos removal job. (Round "Average cost per thousand square metres" answers to 2 decimal places.) b. A routine 4,000 -square-metre asbestos removal job. (Round "Cost per thousand squere metres" onswers to 2 decimal places.) c. A non-routine 2,000-square-metre asbestos removal job. (Round "Cost per thousand square metres" answers to 2 decimal places.)

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