Activity Cost Pool: Removing asbestos Estimating and job setup (per job) Working on nonroutine jobs (per job) Other DENNY ASBESTOS REMOVAL COMPANY Activity Measure Total Activity Thousands of square feet 500 Number of jobs 200 Number of nonroutine jobs 25 N/A Costs for the year: Wages and salaries Disposal fees 200,000 600,000 Equipment depreciation 80,000 On-site supplies 60,000 Office expenses 190,000 Licensing and insurance 370,000 Total cost $1,500,000 Distribution of Resource Consumption Across Activity Cost Pools Estimating Working on Removing and Job Nonroutine Asbestos Setup Jobs Other Totals Wages and salaries 40% 10% 35% 15% 100% Disposal fees 70% 0% 30% 0% 100% Equipment depreciation 50% 0% 40% 10% 100% On-site supplies 55% 15% 20% 10% 100% Office expenses 10% 40% 30% 20% 100% Licensing and insurance 50% 0% 40% 10% 100% Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost Activity Cost Pool Removing Asbestos Estimating and job setup Working on nonroutine jobs DENNY ASBESTOS REMOVAL COMPANY First Stage Allocation Removing Asbestos Estimating and Job Setup Working on Nonroutine Jobs Other Totals DENNY ASBESTOS REMOVAL COMPANY Activity Rates for Activity Cost Pools Total Activity Total Cost Activity Rate DENNY ASBESTOS REMOVAL COMPANY Total and Average Cost per Thousand Square Feet a. Routine job-square feet Removing asbestos Estimating and job set-up Nonroutine job Total cost of the job Cost per thousand square feet b. Routine job square feet Removing asbestos Estimating and job set-up Nonroutine job Total cost of the job Average cost per thousand square feet c. Nonroutine job-square feet Removing asbestos Estimating and job set-up Nonroutine job Total cost of the job Average cost per thousand square feet 2,000 4,000 2,000 per thousand square feet per job per nonroutine job