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I need help with 3C (non routine work column). The answer that is given there is not right, it's not even 14554.00 (for total cost of job) and 7277.00 (for average cost per thousand square feet).

CoursHeroTranscribedText: Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has 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: 'Myjob is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $2.80 to determine the bid price. Since our average cost is only $2.315 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 . Thousands of square , thousand square Remov1ng asbestos feet BI3 feet Estimating and job setup Number of jobs SIIjobs Working on nonroutine Number of nonroutine . . jobs jobs 133 nonroutine Jobs other (organization- sustaining costs and idle capacity costs) None Note: The 133 nonroutine jobs are included in the total of 533 jobs. Both nonroutine jobs and routine jobs require estimating and setup. ' Costs for the Year Wages and salaries $ 353,3I3 Disposal fees 765,333 Equipment , depreciation 98' 3I3 On-site supplies 57,333 Office expenses 273,333 Licensing and , insu rance 479' 33I Total cost $2,323,3I3 ' Distribution of Resource Consumption Across Activities Estimating Working on Removing and Job Nonroutine Asbestos Setup Jobs Othe r Total Wages and , , salaries 53% 13% 3I% 13% 1I3% Disposal fees 73% 3% 33% I% 133% Equipment depreciation 43% 5% 23% 35% 133% On-site supplies 63% 33% 13% 3% 133% Office expenses 15% 35% 2I% 33% 1I3% Lice" "9 and 33% as 5995 2396 133% insu rance , Required: 1. Perform the rst-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 feet of each of the following jobs according to the activity-based costing system. a. A routine 1,000-square-foot asbestos removaljob. b. A routine 2,000-square-foot asbestos removaljob. c. A nonroutine 2,000-square-foot asbestos removaljob. Complete his question by entering your answers in the labs below. Req 3Ato m" 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 lessA Totaloostofthejob $1,518 5 2.731 $ 15,767 Average Cost per thousand $ $

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