Problem $7\mathrm{.}20$ Activity$-$Based Costing and Bidding on Jobs $[$LO$2,$ LO$3]$

Vance Asbestos Removal Company removes potentially toxc ashestos insulatian and reialed products from buldings. The compuny's estimator does not adequately distlingesh between routine work, wach as removal af asbertos insulation around heating pipers in alder believe that non$-$routine work is far more expensive than routhe work and should bear higher customer charges. Ihe estimator sums the square metres by $$4,000$ per thousand square metrestio determine the bid price. Since our average cost is only $$3000$ per and setup work.

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