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Manacc assignment # 2

3.a.
2,000 sq. ft.
Removing Asbestos 3,108
Estimating & Set-up 525
Total 3,633
Ans: $1,816.50/thousand sq. ft.

3.b.
4,000 sq. ft.
Removing Asbestos 6,216
Estimating & Set-up 525
Total 6,741
Ans: $1,685.25/thousand sq. ft.

3.c.
Nonroutine 2,000 sq. ft.
Removing Asbestos 3,108
Estimating & Set-up 525
Working nonroutine 19,960
Total 23,593
Ans: $11,796.50/thousand sq. ft.

4. I do not agree with the company’s estimator because they would be losing a lot of money for projects
with non-routine jobs. The on-site supervisors are right in saying that non-routine jobs require a lot of
extra work, thus incurring extra costs. This could be shown in the computations above. The estimator
should first identify if a certain project would be needing non-routine jobs before he sets a bid price. He
should also propose to the management to add an extra charge for projects with non-routine jobs. The
extra charge should be higher than or equal to $19,960, which is the cost per non-routine job based on
the activity based costing.

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