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(Cack the icon to vew the activity cost calegories) Read the Data table a. Direct-labor costs, $105,000. These costs can be directly traced to HT,$75,000,
(Cack the icon to vew the activity cost calegories) Read the Data table a. Direct-labor costs, $105,000. These costs can be directly traced to HT,$75,000, and ST, $30,000 b. Equipment-related costs (rent, maintenance, energy, and so on), $450,000. These costs are allocated to HT and ST on the basis of test-hours. c. Setup costs, $425,000. These costs are allocated to HT and ST on the basis of the number of setup-hours required. HT requires 12,000 setup-hours, and ST requires 5,000 setup-hours d. Costs of designing tests, $270,000. These costs are allocated to HT and ST on the basis of the time required for designing the tests. HT requires 2,500 hours, and ST requires 2,000 hours Requirements 1. Classify each activity cost as output unit-level, batch-level, productor service-sustaining, or facility-sustaining. Explain each answer. 2. Calculate the cost per test-hour for HT and ST. Explain briefly the reasons why these numbers differ from the $16 per test-hour that Hopkinton calculated using its simple costing system. 3. Explain the accuracy of the product costs calculated using the simple costing system and the ABC system. How might Hopkinton's management use the cost hierarchy and ABC information to better manage its business
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