Miton Test Laboratories does heat testing (HT ) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Miton aggregates atl operating costs of $1,275,000 inta a single overhead cost pool. Miton calculates a rate per testhour of $15($1,275,000+85,000 total test-hours). HT uses 60,000 test-hours, and ST uses 25,000 testhour. Gary. Cook, Mhinor's conttoler, believes that there is enough variation in test peocedures and cost structures to establish separale costing and billing rates for HT and ST. The market for tost services is becoming compentive. Without this information, any miscosting and mispricing of its services could cause Maton to lose business. Cook divides Miton's costs into lour activity-cost categories. (Cick the icon to view the activiy-oost categories) Read the tequirements Output unitlevel costs are related to the namber of unis tesed, recuired for each uni tested. Service-sustaining costs are costs used to support indidual services regarsless of the m. Faclifysustaining costs are costs that can not be traced to ind vidual sorvices but support Data table Requirement 2. Caloulate the cost per testhour for HT and ST. Explain briely the reasons First, deserrine the formula used to calculate the coet for each activity in each tost type. a. Direct 4abor costs, $418.000. These costs can be directy traced to HT, $360,000, and $T,558,000 b. Equipment-rousiod costs (rent, maintenance, energy and so on), $340,000. These costs are ollocated to HT and ST on the basis of sest-houm c. Selup costh, \$396.000. These costs are alecated to HT and ST on the basis of the number of setup-houn requred. HT requires 11,500 setup-heurs, and ST requles 5.000 setup hours. a. Costs of designing lests, $270,000. These coots are alocated to HT and ST on the basis of the time required for designing the bests. HT requiles 2,500 hourf, and ST requres 2,600 hours Miton Test Laboratories does heat testing (HT ) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Miton aggregates atl operating costs of $1,275,000 inta a single overhead cost pool. Miton calculates a rate per testhour of $15($1,275,000+85,000 total test-hours). HT uses 60,000 test-hours, and ST uses 25,000 testhour. Gary. Cook, Mhinor's conttoler, believes that there is enough variation in test peocedures and cost structures to establish separale costing and billing rates for HT and ST. The market for tost services is becoming compentive. Without this information, any miscosting and mispricing of its services could cause Maton to lose business. Cook divides Miton's costs into lour activity-cost categories. (Cick the icon to view the activiy-oost categories) Read the tequirements Output unitlevel costs are related to the namber of unis tesed, recuired for each uni tested. Service-sustaining costs are costs used to support indidual services regarsless of the m. Faclifysustaining costs are costs that can not be traced to ind vidual sorvices but support Data table Requirement 2. Caloulate the cost per testhour for HT and ST. Explain briely the reasons First, deserrine the formula used to calculate the coet for each activity in each tost type. a. Direct 4abor costs, $418.000. These costs can be directy traced to HT, $360,000, and $T,558,000 b. Equipment-rousiod costs (rent, maintenance, energy and so on), $340,000. These costs are ollocated to HT and ST on the basis of sest-houm c. Selup costh, \$396.000. These costs are alecated to HT and ST on the basis of the number of setup-houn requred. HT requires 11,500 setup-heurs, and ST requles 5.000 setup hours. a. Costs of designing lests, $270,000. These coots are alocated to HT and ST on the basis of the time required for designing the bests. HT requiles 2,500 hourf, and ST requres 2,600 hours
