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Vance Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. The company's estimator has been involved $in$ a long$-$simmering dispute with the $on-$site work supervisors. The $on-$site supervisors claim that the estimator does not adequately distinguish between routine work, such $as$ removal $of$ asbestos insulation around heating pipes $in$ older homes, and non$-$routine work, such $as$ removing asbestos$-$contaminated ceiling plaster $in$ industrial buildings. The $on-$site supervisors believe that non$-$routine 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 $isto$ measure the area $tobe$ cleared $of$ asbestos. $As$ directed $by$ top management, I simply multiply the square metres $by\frac{?}{(\frac{?}{?}\text{\$}4,200\frac{?}{?})}$ per thousand square metres $to$ determine the bid price. Since our average cost $is$ only $\frac{?}{(\frac{?}{?}\text{\$}3,200\frac{?}{?})}$ per thousand square metres, that leaves enough cushion $to$ take care $of$ the additional costs $of$ nonroutine work that shows $up.$ Besides, $itis$ 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 $an$ ABC study $of$ all $of$ its costs. Data from the ABC system follow:

$*$ The total number $of$ jobs includes non$-$routine jobs $as$ well $as$ routine jobs. Non$-$routine jobs $as$ well $as$ routine jobs require estimating and setup work.

$\begin{array}{cc}?& \text{D}\text{i}\text{s}\text{t}\text{r}\text{i}\text{b}\text{u}\text{t}\text{i}\text{o}\text{n}of\text{R}\text{e}\text{s}\text{o}\text{u}\text{r}\text{c}\text{e}\text{C}\text{o}\text{n}\text{s}\text{u}\text{m}\text{p}\text{t}\text{i}\text{o}\text{n}\text{a}\text{c}\text{r}\text{o}\text{s}\text{s}\\ ?& ?\\ ?& ?\\ ?& \text{R}\text{e}\text{m}\text{o}\text{v}\text{i}\text{n}\text{g}\\ \text{E}\text{s}\text{t}\text{i}\text{m}\text{a}\text{t}\text{i}\text{n}\text{g}\text{a}\text{n}\text{d}& \text{W}\text{o}\text{r}\text{k}\text{i}\text{n}\text{g}on\text{N}\text{o}\text{n}-\\ ?& ?\\ ?& \text{A}\text{s}\text{b}\text{e}\text{s}\text{t}\text{o}\text{s}\\ \text{J}\text{o}\text{b}\text{S}\text{e}\text{t}\text{u}\text{p}& \text{r}\text{o}\text{u}\text{t}\text{i}\text{n}\text{e}\text{J}\text{o}\text{b}\text{s}\\ \text{O}\text{t}\text{h}\text{e}\text{r}& \text{T}\text{o}\text{t}\text{a}\text{l}\\ \text{W}\text{a}\text{g}\text{e}\text{s}\text{a}\text{n}\text{d}\text{s}\text{a}\text{l}\text{a}\text{r}\text{i}\text{e}\text{s}& 40\%\\ 10\%& 35\%\\ 15\%& 100\%\\ \text{D}\text{i}\text{s}\text{p}\text{o}\text{s}\text{a}\text{l}\text{f}\text{e}\text{e}\text{s}& 75\%\\ 0\%& 25\%\\ 0\%& 100\%\\ \text{E}\text{q}\text{u}\text{i}\text{p}\text{m}\text{e}\text{n}\text{t}\text{d}\text{e}\text{p}\text{r}\text{e}\text{c}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n}& 45\%\\ 0\%& 40\%\\ 15\%& 100\%\\ On-\text{s}\text{i}\text{t}\text{e}\text{s}\text{u}\text{p}\text{p}\text{l}\text{i}\text{e}\text{s}& 50\%\\ 15\%& 25\%\\ 10\%& 100\%\\ \text{O}\text{f}\text{f}\text{i}\text{c}\text{e}\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}\text{s}& 10\%\\ 40\%& 30\%\\ 20\%& 100\%\\ Licensing\text{a}\text{n}\text{d}\text{i}\text{n}\text{s}\text{u}\text{r}\text{a}\text{n}\text{c}\text{e}& 50\%\\ 0\%& 45\%\\ 5\%& 100\%\end{array}$

Required:

Perform the first$-$stage allocation $of$ costs $to$ the activity cost pools.

Note: $Do$ not leave any empty spaces; input $a0$ wherever $itis$ required.

$2.$ Compute the activity rates for the activity cost pools.

Note: Round your answers $to2$ decimal places.

$\begin{array}{cc}\text{A}\text{c}\text{t}\text{i}\text{v}\text{i}\text{t}\text{y}\text{C}\text{o}\text{s}\text{t}\text{P}\text{o}\text{o}\text{l}& \text{A}\text{c}\text{t}\text{i}\text{v}\text{i}\text{t}\text{y}\text{R}\text{a}\text{t}\text{e}\\ ?& ?\\ \text{R}\text{e}\text{m}\text{o}\text{v}\text{i}\text{n}\text{g}\text{a}\text{s}\text{b}\text{e}\text{s}\text{t}\text{o}\text{s}& ?\\ \text{p}\text{e}\text{r}\text{t}\text{h}\text{o}\text{u}\text{s}\text{a}\text{n}\text{d}\text{s}\text{q}\text{u}\text{a}\text{r}\text{e}\text{m}\text{e}\text{t}\text{r}\text{e}\text{s}& ?\\ \text{E}\text{s}\text{t}\text{i}\text{m}\text{a}\text{t}\text{i}\text{n}\text{g}\text{a}\text{n}\text{d}\text{j}\text{o}\text{b}\text{s}\text{e}\text{t}\text{u}\text{p}& ?\\ \text{p}\text{e}\text{r}\text{j}\text{o}\text{b}& ?\\ \text{W}\text{o}\text{r}\text{k}\text{i}\text{n}\text{g}on\text{n}\text{o}\text{n}-\text{r}\text{o}\text{u}\text{t}\text{i}\text{n}\text{e}\text{j}\text{o}\text{b}\text{s}& ?\\ \text{p}\text{e}\text{r}\text{n}\text{o}\text{n}-\text{r}\text{o}\text{u}\text{t}\text{i}\text{n}\text{e}\text{j}\text{o}\text{b}& ?\end{array}$ Using the activity rates you have computed, determine the total cost and the average cost per

thousand square metres $of$ each $of$ the following jobs according $to$ the ABC system:

$a.$ A routine $2,000-$square$-$metre asbestos removal job.

Note: Round your answers $to2$ decimal places.

$b.$ A routine $4,000-$square$-$metre asbestos removal job.

Note: Round your answers $to2$ decimal places.

$c.$ A non$-$routine $2,000-$square$-$metre asbestos removal job.

Note: Round your answers $to2$ decimal places.

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