You received partial credit in the previous attempt Check my work 4 5 points Mercer Asbestos Removal Company removes potentially toxic asbestos Insulation and related products from buildings. There been a long-simmering dispute between the company's estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work, such as removal of asbestos Insulation around heating pipes in older homes, and nonroutine work, such as removing asbestos contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine 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 footage by $250 to determine the bid price. Since our average cost is only $2.01 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 850 thousand square feet Estimating and job setup Number of jobs 4e jobs Working on nonroutine Jobs Number of nonmoutine jobs 1ee nonroutine jobs Other (organization-sustaining costs and idle capacity costs) None Note: The 100 nonroutine jobs are included in the total of 400 jobs. Both non routine jobs and routine jobs require estimating and setup. Costs for the Year Mapes and salaries Disposal fees Equipoent depreciation On-site supplies Office expenses Licensing and insurance Total cost 308,000 786,000 90, see 50,000 210.000 410,000 $ 1.774.00 Distribution of resource Consumption Across Activities Estimating and Job Asbestos Hages and salaries ses les ni fer Working on Nonroutine obs 2014 sart Other 103 RS Total 10 ME CM Type here to search You received partial credit in the previous attempt. 4 5 paints Distribution of Resource Consumption Across Activities Estimating Removing and Job Asbestos Setup Wages and salaries 60% 10% Disposal fees 70% e% Equipment depreciation 40% 5% On-site supplies 70% 20% Office expenses 15% 35% Licensing and insurance 25% es Working on Nonroutine Jobs 20% 3e% 25% 1ex Other 1ex ex 38% e% 30% 25% Total 100% 109% 109% lees 100% 1ee 20% 5ex Book Required: 1. Perform the first-stage allocation of costs to the activity cost pools. 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 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. Reg 1 Reg 2 Req 3A to 30 Perform the first stage allocation of costs to the activity cost pools. Removing Estimating Working on and Job Nonroutine asbestos Jobs Wages and salaries $ 308,000 $ 10 $ 61,600 s Other Total Setup 30,800 $ 400,410