Help me calculate the cost of each activity for both heat testing and stress testing! Please show work to help me learn
Springfield Test Laboratories does heat testing (HT) and stw towing (ST) on materials and operates a capacity. Under its current simple costing system, Springfield aggregates all operating Bouts of $1,200,000 into a single Overhead cost podl, Springfield calculates arate per tot hour of $14 (51.260,000/00.000 totaltest hours). HT uses 50,000 foot hours, and ST UDO 40,000 est hours. Gary O'Loughlin, Springfield's controlle beleven that there is anough variation in test predures and cont structures to entablish separate costing and biling rates for HT and St. The market for test services is becoming competitiva. Without this information, any miscasting and mi pricing of its services could cause Springfield to lose business. O'Loughlin divides Springfield's costs into four activity-cost categories. m (Click the icon to view the activity-cost categories) Read the requirements Requirement 1. Classify each activity on an output unit-towel, batch-level product or service-sustaining, or facility sustaining. Explaineach answer Cost Item Cost-type Output Unt- a. Direct labor Equipment-related posts (rent, maintenance Output unit- b. energy, etc.) Tovel c. Setup costs Batchevel Service d. Costs of designing tests Sustaining Output uni-level costs are related to the number of units tested required for each unit tested Batch costs are related to a group of units of the service. They are not related to the number of uni ted Service sustaining costs or conta used to support individual services regardless of the number of units of batches tested Facility M ining costs are cool that can not be traced to individual services but support the company is whole Requirement 2, Calculate the cost per hour for HT and ST Explain briefly the reasons why these numbers other from the 14 per festhou that Springfield calculated using its simple costing systern First, determine the form used to calculate the cost for each activity in each fost type Ally hours per west cost per Activity rate activity Requrements Chovate the cost of each activity and the total cost of the heatsing and stress testing Heat Test (HT) 1. Clasuly each activity cost as ou tout unit level batch Data Table level, product or service-sustaining or facity-sustaining Explaineach answer 2. Coulate the cost per test-hour for HT and ST. Explain Direct labor a. Direot-labor costs $145.000, Thece costs can be directly briefly the reasons why these numbers offer from the traced to HT $100,000, and ST 345,000 S14 per test-hour that Springfald calculated using its Equipment b. Equipment-related costs frent, maintenance energy and so simple coating system, Setup on). $540,000. These bosts we alocated to HT and ST on the 3. Explain the accuracy of the product costs calculated baus oftest hours, using the simple cost ng system and the ABC system Design Setup costs $300,000. These costs are located to HT and How might Springfield's management Use the cost ST on the basis of the number of self-hours required. HT Horarchy and ABC information to better manage its requires 10,000 eup hours and ST recure 5.000 business? sety-hours d. Cosis of designing tests, 5290.000. These costs are located to HT and ST on the basis of the time required to design me Print Done tests. T requires 2.600 hours and ST requires 2.500 hours. Total Tola Print Done Springfield Test Laboratories does heat testing (HT) and stw towing (ST) on materials and operates a capacity. Under its current simple costing system, Springfield aggregates all operating Bouts of $1,200,000 into a single Overhead cost podl, Springfield calculates arate per tot hour of $14 (51.260,000/00.000 totaltest hours). HT uses 50,000 foot hours, and ST UDO 40,000 est hours. Gary O'Loughlin, Springfield's controlle beleven that there is anough variation in test predures and cont structures to entablish separate costing and biling rates for HT and St. The market for test services is becoming competitiva. Without this information, any miscasting and mi pricing of its services could cause Springfield to lose business. O'Loughlin divides Springfield's costs into four activity-cost categories. m (Click the icon to view the activity-cost categories) Read the requirements Requirement 1. Classify each activity on an output unit-towel, batch-level product or service-sustaining, or facility sustaining. Explaineach answer Cost Item Cost-type Output Unt- a. Direct labor Equipment-related posts (rent, maintenance Output unit- b. energy, etc.) Tovel c. Setup costs Batchevel Service d. Costs of designing tests Sustaining Output uni-level costs are related to the number of units tested required for each unit tested Batch costs are related to a group of units of the service. They are not related to the number of uni ted Service sustaining costs or conta used to support individual services regardless of the number of units of batches tested Facility M ining costs are cool that can not be traced to individual services but support the company is whole Requirement 2, Calculate the cost per hour for HT and ST Explain briefly the reasons why these numbers other from the 14 per festhou that Springfield calculated using its simple costing systern First, determine the form used to calculate the cost for each activity in each fost type Ally hours per west cost per Activity rate activity Requrements Chovate the cost of each activity and the total cost of the heatsing and stress testing Heat Test (HT) 1. Clasuly each activity cost as ou tout unit level batch Data Table level, product or service-sustaining or facity-sustaining Explaineach answer 2. Coulate the cost per test-hour for HT and ST. Explain Direct labor a. Direot-labor costs $145.000, Thece costs can be directly briefly the reasons why these numbers offer from the traced to HT $100,000, and ST 345,000 S14 per test-hour that Springfald calculated using its Equipment b. Equipment-related costs frent, maintenance energy and so simple coating system, Setup on). $540,000. These bosts we alocated to HT and ST on the 3. Explain the accuracy of the product costs calculated baus oftest hours, using the simple cost ng system and the ABC system Design Setup costs $300,000. These costs are located to HT and How might Springfield's management Use the cost ST on the basis of the number of self-hours required. HT Horarchy and ABC information to better manage its requires 10,000 eup hours and ST recure 5.000 business? sety-hours d. Cosis of designing tests, 5290.000. These costs are located to HT and ST on the basis of the time required to design me Print Done tests. T requires 2.600 hours and ST requires 2.500 hours. Total Tola Print Done