%E5-19 (similar Vineyard Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Vineyard aggregates all operating costs of $1,330,000 into a single overhead cost pool. Vineyard calculates a rate per test-hour of $14 (51,330,000/ 95,000 total test hours). HT uses 63.000 test-hours, and ST uses 32,000 test-hours. Gary Celeste, Vineyard's controller, believes that there is enough variation in test procedures and cost structures to establish separate costing and billing rates for HT and ST. The market for test services is becoming competitive. Without this information, any miscosting and mispricing of its services could cause Vineyard to lose business Celeste divides Vineyard's costs into four activity.cost categories (Click the icon to view the activity-cost categories.) Read the requirements Activity rate Activity hours per test type Cost per activity Calculate the cost of each activity and the total cost of the heat testing and stress testing, Heat Test (HT) Data Table TOWN Cost Direct labor a Drect labor costs, $200,000. These costs can be directly traced to HT, $189.000, Equipment and ST, $80,000 b. Equipment-related costs (rent, maintenance, energy, and so on). $475,000. These Setup costs are allocated to HT and ST on the basis of test-hours. c. Setup costs, $385,000. These costs are allocated to HT and ST on the basis of the number of setup-hours required. HT requires 13,000 setup hours, and ST requires Total 4,500 setup-hours Costs of designing tests, S248,000. These costs are allocated to HT and ST on the basis of the time required to design the tests. HT requires 2,500 hours, and ST Enter any number in the edit fields and then requires 1,500 hours Design d. ck Answer nas 2. Classify each activity cost as output unit-level, batch-level, product-or service-sustaining, or facility-sustaining. Explain each answer. Calculate the cost per test-hour for HT and ST. Explain briefly the reasons why these numbers differ from the $14 per test-hour that Vineyard calculated using its simple costing system. Explain the accuracy of the product costs calculated using the simple costing system and the ABC system. How might Vineyard's management use the cost hierarchy and ABC information to better manage its business? 3 . Print Done