Che The onsite do not that the work such as work is far more

Che The on-site do not that the work, such as work is far more e than routine work and should bear higher sums up his by top by $2.50 to the bid price. Since our average cost is only $2.01 per square foot, that s of nonroutine work that shows up. Besides, it is difficult to know what is routine or not to take care of the enough To shed light on this controversy,the company initiated an actvity-based costing study of allof ts costs. Data from the costing system follow and job setup 400 jobs tine jobs tine jobs are ineluded in the total of 400 jobs 706,000 90,000 50,000 Office $ 1,774,000 JobsOther Total 100 401 701 1008 and

Solution

1.

2.

Working:

3a. to c.

Working:

	Removing	Estimating and	Working on	Other	Total
	Asbestos	Job Setup	Nonroutine Jobs
Wages and salaries	184800	30800	61600	30800	308000
Disposal fees	494200	0	211800	0	706000
Equipment depreciation	36000	4500	22500	27000	90000
On-site supplies	35000	10000	5000	0	50000
Office expenses	31500	73500	42000	63000	210000
Licensing and insurance	102500	0	205000	102500	410000
Total cost	884000	118800	547900	223300	1774000