P13-32 (similar to) Question Help Techno Laboratories evaluate the reaction of materials to extremo increases in comperature After analyzing the company data ha has divided operating costs into the following the cost Much of the company's early growth was attributable to government contracts, but recent growth pools has come from expansion into commercial markets Click the loan to view the cost pools.) (Click the icon to view the current overhead allocation Information.) Click the icon to view the proposed change.) Click the icon to view the budgeted information Read the requirements Requirement 1. Find the single rate for operating costs based on test-hours and the hourly billing rate for HTT and ACT (Round your awwers to the nearest cont.) The side rate for operating costs based on last hours is per testing hour Enter any number in the edit alder than pools: as attributable to covernment contracts but recent arowth cial markets. Overhead alloc Requirements change.) mation.) operating cos e nearest cent.) ed on test-hou 1. Find the single rate for operating costs based on test-hours and the hourly billing rate for HTT and ACT. 2. Find the three activity-based rates for operating costs. 3. What will the billing rate for HTT and ACT be based on the activity-based costing structure? State the rates in terms of test-hours. Referring to both requirements 1 and 2, which rates makes more sense for Techno? 4. If Techno's competition all charge $16 per hour for arctic testing, what can Techno do to stay competitive? Print Done d then click Check ATTSWOT Clear All (Click the icon to view the cost pools.) pansion into commercial markets. to view the current overhead alloc to view the proposed chango) ration) * More Info D nearest cent.) nd the single rate for operating cos operating costs based on test-hou Two types of testing at Techno are Heat Testing (HTT) and Arctic-condition Testing (ACT) Currently, all of the budgeted operating costs are collected in a single overhead.pool . All of the estimated fasting-hours are also collected in a single pool. One rate per test-hour is used for both types of testing. This hourly rate is marked up by 36% to recover administrativo costs and taxes and to cam a profit. Print Done in the edit fields and then click Check Answer. rto) aluates the reaction of materials to extreme increases in temperature, early growth was attributable to government contracts, but recent growth on into commercial markets. w the current overhead allocation information ww the proposed change.) More Info After analyzing the company data, he has divided operating costs int pools: (Click the icon to view the cost pools.) nation.) e nearest cent.) single rate for operating cos eing costs based on test-hou Tom Barton, Techno's controller, believes that there is enough variation in the test procedures and cost structure to establish separate costing rates and billing rates at a 35% Inarkup. He also believes that the inflexible rate structure the company is currently using is inadequate in today's competitive environment. lis Print Done dit fields and then click Chart Annun reaction of materials to extreme increases in temperature, eth was attributable to government contracts, but recent growth mercial markets. went overhead allocation informa Data Table eosed change.) After analyzing the company data, he has divided operating costs into pools: Click the icon to bocopt pools.) X bgeted information.) e for operating costs based on nswers to the nearest cent.) based on test-hours is Labor and supervision Setup and facility costs Utilities 468,700 327,795 393,800 1,190,295 Total budgeted costs for the period S Print Done and then click Check Answer. Clear All CI mation.) sed change.) i More Info for operating cos Je nearest ased on test-houl Tom Barton budgets 109,000 total test-hours for the coming period. Test-hours is also the cost driver for labor and supervision. The budgeted quantity of cost driver for setup and facility costs is 650 setup hours. The budgeted quantity of cost driver for utilities is 11,000 machine-hours. Tom has estimated that HTT uses 60% of the test-hours, 20% of the setup-hours, and half the machine-hours. Print Done and then click Check