Chapter 7, Problem 18P

To determine

Activity based costing(ABC):

Activity based costing is recording the activity and allocating the expenses for the activity. It helps the management to decide upon the activity with more expense and activity with less expense. It also helps the management to take decision about more production and less production with the help of activity rate. It is very helpful for cost cutting and budgeting.

To calculate:

To calculate the allocation of cost, activity rate, cost for 1000 asbestos removal, 2000 asbestos removal and 1000 square foot asbestos removal with non routine job.