Question

please help!

Activity Cost Pool Activity Measure Total Activity Removing asbestos Thousands of square feet 808 thousand square feet Estimating and job setup Number of jobs 500 jobs Working on nonroutine jobs Number of nonroutine jobs 108 nonroutine jobs Other (organization-sustaining costs and idle capacity costs) None Note: The 19 nonroutine jobs are included in the total of 5ee jobs. Both nonroutine jobs and routine jobs require estimating and setup. Working organizatity costs Costs for the Year Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost 300,eee 700, eee 90,000 50,000 2ee, Bee 400, Bee 1,748, Bee Distribution of Resource Consumption Across Activities Estimating Removing and Job Asbestos Setup Wages and salaries SO 16 Disposal fees Equipment depreciation On-Site Supplies Office expenses Licensinandurance Working on Nonroutine Jobs 3 Total 100 10 100 106 10 100

Answer 1

Part 1

	Removing asbestos	Estimating and job setup	Working on nonroutine jobs	Other	Total s
Wages and salaries	150000	30000	90000	30000	300000
Disposal fees	420000	0	280000	0	700000
Equipment depreciation	36000	4500	18000	31500	90000
On-site supplies	30000	15000	5000	0	50000
Office expenses	20000	70000	50000	60000	200000
Licensing and insurance	120000	0	200000	80000	400000
Total	776000	119500	643000	201500	1740000

	Removing asbestos	Estimating and job setup	Working on nonroutine jobs	Other	Total s
Wages and salaries	50%	10%	30%	10%	100%
Disposal fees	60%	0%	40%	0%	100%
Equipment depreciation	40%	5%	20%	35%	100%
On-site supplies	60%	30%	10%	0%	100%
Office expenses	10%	35%	25%	30%	100%
Licensing and insurance	30%	0%	50%	20%	100%

Part 2

Activity cost pool	Activity rate
Removing asbestos	$970	Per thousand square feet
Estimating and job setup	$239	Per job
Working on nonroutine jobs	$6430	Per nonroutine job

Activity cost pool	Total cost (a)	Total activity (b)	Activity rate (a / b)
Removing asbestos	776000	800 thousand square feet	$970	Per thousand square feet
Estimating and job setup	119500	500 jobs	$239	Per job
Working on nonroutine jobs	643000	100 nonroutine jobs	$6430	Per nonroutine job

Part 3

	Routine 1000 sq. ft. job	Routine 2000 sq. ft. job	Nonrouting 1000 sq. ft. job
Total cost of the job	970239	1940239	976669
Average Cost per thousand square feet	$970.24	$1940.24	$976.67

Part 3 A

Removing asbestos (970*1000)	970000
Estimating and job setup (239*1)	239
Nonroutine job (not applicable)	0
Total cost of the job	970239
Cost per thousand square feet (970239/1000)	$970.24

Part 3 B

Removing asbestos (970*2000)	1940000
Estimating and job setup (239*1)	239
Nonroutine job (not applicable)	0
Total cost of the job	1940239
Cost per thousand square feet (1940239/1000)	$1940.24

Part 3 C

Removing asbestos (970*1000)	970000
Estimating and job setup (239*1)	239
Nonroutine job (6430*1)	6430
Total cost of the job	976669
Cost per thousand square feet (976669/1000)	$976.67