Precision Laboratories evaluates the reaction of materials to extreme increases in temperature. Much of the company's early growth was attributable to government contracts, but recent growth has come from expansion into commercial markets. Click the icon to view the current overhead allocation information.) (Click the icon to view the proposed change.) Requirement 1. Find the single rate for operating costs based on te (Round your answers to the nearest cent.) The single rate for operating costs based on test-hours is The hourly billing rate for HTT and ACT is Two types of testing at Precision are Heat Testing (HTT) and Arctic-Condaiion Testing (ACT). Currently, all of the budgeted operating costs are coliected in a single overhead pool. All of the estimated testing-hours are also collected in a single pool. One rate per test-hour is used for both types of festing. This hourly rate is marked up by 40% to recover administrative costs and taxes and to earn a profit. Jeff Boone, Precision's controller, believes that there is enough variation in the test procedures and cost structure to establish separate costing rates and biling rates. at a 40% markup. He also believes that the inflexible rate stucture the company is currently using is inadequate in today's compelifive environment. Data table Jelf Boone budgets 100,000 total test-hours for the coming period. Test-hours is also the cost driver for labor and supervision. The budgeted quantify of cost driver for setup and faclity costs is 600 setup hours. The budgeted quantity of cost driver for utities is 9,000 machine-hours. Jeff has estimated that HTI uses 60% of the testhours. 20% of the setup-hours, and half the machine-hours. fequirement 1. Fhs the sngle rate for operithg conts based on toes boust and the houfly bieng rata for HTT and A Round you antwert to the noareat oent? The tingle eato lor coerasing costs based on testhours is perchestang forlt The bourly biling rate far HTT and ACT is