Best Test Laboratories was founded 25 years ago to evaluate the reaction of materials to extreme increases in temperature. Much of the company's early growth was attributable to government contracts to test the suitability of weapons, transportation equipment, and clothing for use in arid desert regions. Recent growth has come from expansion into commercial markets. Environmental testing at Best Test now includes the following: heat testing (HTT). air turbulence testing (ATT). stress testing (SST). arctic condition testing (ACT). aquatic testing (AQT). Currently, all the company's budgeted operating costs are collected in a common overhead pool. All of the estimated testing hours are collected in another common pool. One rate per test hour is used to estimate the cost of all five types of testing. In determining the sales price, this hourly rate is marked up by 45% to cover administrative expenses, taxes, and profit. Rick Shaw, Best Test's operations engineer, believes that there is enough variation in the test procedures and cost structure to establish separate costing and billing rates. After analyzing the following data, he has recommended that new rates be put into effect at the beginning of Best Test's fiscal year. The budgeted total costs for the coming year are as follows: Test pool labor (10 employees)* Supervision Equipment depreciation Heat Electricity Water Setup Indirect materials Operating supplies Total costs Total estimated test hours $ 420,000 72,000 178,000 170,000 124,000 74,000 58,000 104,000 60,000 $ 1,260,000 105,000 *All employees are paid the same salary. The following chart reports Shaw's analysis of resource usage by test type. ATT T ACT AQ Test pool labor employees 3 2 2 1 2 Supervision 40% 15% 15% 15% 15% Equipment depreciation $48,000 $22,000 $39,000 $32,000 $37,000 Heat 50% 5% 5% 30% 10% Electricity 30% 10% 10% 40% 10% Water - 20% 20% 60% Setup 20% 15% 30% 15% 20% Indirect materials 16,500 15,600 31,200 20,600 20,100 Operating supplies 10% 10% 25% 20% 35% Test hours 31,500 10,500 26,250 21,000 15,750 Competitors' hourly billing rates $17.50 $19.00 $15.50 $16 $20.00 Compute the common pool hourly cost and hourly billing rate for Best Test Laboratories. (Round answers to 2 decimal places, e.g. 15.25.) Common pool hourly cost $ /test hour Hourly billing rate /test hour Compute the activity-based hourly cost for each of the five tests performed by Best Test Laboratories. (Round answers to 2 decimal places, e.g. 15.25.) - HTT ATT SST ACT AQT Cost per hour $ Calculate the activity-based hourly billing rate for each of the five tests performed by Best Test Laboratories. (Round answers to 2 decimal places, e.g. 15.25.) HTT ATT SST ACT AQT Hourly billing rate $ Click if you would like to Show Work for this question: Open Show Work Best Test Laboratories was founded 25 years ago to evaluate the reaction of materials to extreme increases in temperature. Much of the company's early growth was attributable to government contracts to test the suitability of weapons, transportation equipment, and clothing for use in arid desert regions. Recent growth has come from expansion into commercial markets. Environmental testing at Best Test now includes the following: heat testing (HTT). air turbulence testing (ATT). stress testing (SST). arctic condition testing (ACT). aquatic testing (AQT). Currently, all the company's budgeted operating costs are collected in a common overhead pool. All of the estimated testing hours are collected in another common pool. One rate per test hour is used to estimate the cost of all five types of testing. In determining the sales price, this hourly rate is marked up by 45% to cover administrative expenses, taxes, and profit. Rick Shaw, Best Test's operations engineer, believes that there is enough variation in the test procedures and cost structure to establish separate costing and billing rates. After analyzing the following data, he has recommended that new rates be put into effect at the beginning of Best Test's fiscal year. The budgeted total costs for the coming year are as follows: Test pool labor (10 employees)* Supervision Equipment depreciation Heat Electricity Water Setup Indirect materials Operating supplies Total costs Total estimated test hours $ 420,000 72,000 178,000 170,000 124,000 74,000 58,000 104,000 60,000 $ 1,260,000 105,000 *All employees are paid the same salary. The following chart reports Shaw's analysis of resource usage by test type. ATT T ACT AQ Test pool labor employees 3 2 2 1 2 Supervision 40% 15% 15% 15% 15% Equipment depreciation $48,000 $22,000 $39,000 $32,000 $37,000 Heat 50% 5% 5% 30% 10% Electricity 30% 10% 10% 40% 10% Water - 20% 20% 60% Setup 20% 15% 30% 15% 20% Indirect materials 16,500 15,600 31,200 20,600 20,100 Operating supplies 10% 10% 25% 20% 35% Test hours 31,500 10,500 26,250 21,000 15,750 Competitors' hourly billing rates $17.50 $19.00 $15.50 $16 $20.00 Compute the common pool hourly cost and hourly billing rate for Best Test Laboratories. (Round answers to 2 decimal places, e.g. 15.25.) Common pool hourly cost $ /test hour Hourly billing rate /test hour Compute the activity-based hourly cost for each of the five tests performed by Best Test Laboratories. (Round answers to 2 decimal places, e.g. 15.25.) - HTT ATT SST ACT AQT Cost per hour $ Calculate the activity-based hourly billing rate for each of the five tests performed by Best Test Laboratories. (Round answers to 2 decimal places, e.g. 15.25.) HTT ATT SST ACT AQT Hourly billing rate $ Click if you would like to Show Work for this question: Open Show Work