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You own a chemical removal company. The following annual costs are associated with your business: Wages and salaries $360,000 Disposal fees $765,000 Equipment depreciation
You own a chemical removal company. The following annual costs are associated with your business: Wages and salaries $360,000 Disposal fees $765,000 Equipment depreciation $98,000 On-site supplies $57,000 Office expenses $270,000 Licensing and Insurance $470,000 The activities associated with the operation of the company follow: Activity Cost Pool Activity Measure Annual Activity Chemical Removal Thousands of sq. ft. 800 thousand sq. ft. Estimating and Job Setup Number of jobs 500 jobs Working on Nonroutine Number of nonroutine tasks 100 non-routine tasks Tasks Other (org.-sustaining costs N/A N/A and idle capacity costs) The consumption of resources by activity is shown below: Chemical Removal Estimating Working on Other and Job Nonroutine Setup Tasks Wages and salaries 50% 10% 30% 10% Disposal fees 70% 0% 30% 0% 1086 50% 300 2501
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