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Mercer Asbestos Removal Company removes potentially toxc asbestes insulation and related peoducts from bulcings. There thas. been a longsimmering dispute between the company's estinator and the work supervisors. The onsfe supervisos ciaim that the extmptors do not adequstely disinguish between rovtine work, such as removal of asbestos insulation around heading pises in older homes, and nonroutine work such as removing astestos cortaminsted ceding plaster in intustrial buidings. The ons?e supenisors beleve that noneoutine work is far more expensive than routine work and shodid bear higher customer chages The estimator stams up his posibon in this way. Myjob s to measure the ares to be cleared of asbestos. As directed by top management, Ismply multiply the square footage by 5.100 to determine the bid price. Since our average cost is only $2.755 per square foot, that leoves enough cust ion to take care of the addisonal costs of nongoutine work that shows up Besides, it is dificul to know what is routine of not routine untilyou actually start leaning things apart" To shed light an this controversy, the cocmpany iniated an activity based costing study of al of its couts. Data from the activity.based costing system foliow Nose. The 100 nomroutine jobs are induded in the total of 400 jobs. Both norroutce jobs and routine jobs requie ettimating and setup Aequired: 1. Perfomm the firtsage-alocasion of costs to the activity cost pools. 2. Compule the activtyrates for the activity cost pools. 3. Using the activity rates you have computed, determine the togal cost and the average cost per thousand square feet of each of the following jobs according to the activity based costing system 4. Arovtine 1000iquarefootasbestosremovaljob b. A routine 2000-square-foot asbestos temoval job c. A nonroutine 2,000-4quare foot asbestos temoval job Complete thas question ty entering rour ancwres in the tabs below. Feforin the first ataje albocation of costs to the activity cest pooks

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