veleve lidl TIULIUulile WUIK IS Idl lliure expensive lildil TUULT WUIK dllu Siluuiu vedl iyiler CuSluinel Cildiyes. Te esildlUI SUITS 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 $2.235 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 Activity Measure Total Activity Removing asbestos Thousands of square feet 800 thousand square feet Estimating and job setup Number of jobs 500 jobs Working on nonroutine jobs Number of nonroutine jobs 100 nonroutine jobs Other (organization-sustaining costs and idle capacity costs) None Note: The 100 nonroutine 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 salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost 317,000 712,000 97,000 55,000 220,000 420,000 $ 1,821,000 Working on Nonroutine Jobs 20% Distribution of Resource Consumption Across Activities Estimating Removing and Job Asbestos Setup Wages and salaries 50% 15% Disposal fees 0% Equipment depreciation On-site supplies 60% 25% Office expenses 10% 40% Licensing and insurance 30% 0% 60% 50% 10% 40% 15% 15% 15% Other 15% 0% 25% 0% 35% 10% Total 100% 100% 100% 100% 100% 100% 60% : 3. Using the activity Pates you have computed, determine the total cost and the average cost Bed thousand square feet of each of the following jobs according to the activity-based costing system. a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal job. c. A nonroutine 2,000-square-foot asbestos removal job. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A to 30 RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR Using 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 activity-based costing system. (Round the "Average Cost per thousand square feet" to 2 decimal places.) a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal job. c. A nonroutine 2,000-square-foot asbestos removal job. Show less Routine 1,000 sq. ft. job Routine 2,000 sq. ft. job Nonroutine 2,000 sq. ft. job Total cost of the job Average Cost per thousand square feet