Precision

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.

Annual Manufacturing Overhead Budget 2017 Per Per DLH Monthly Actual MOH Total Output Input MOH Budget Costs for Amount Unit Unit May 2017 May 2017 Variable MOH Indirect manufacturing labor $ 1,008,000 $ 1.50 $ 0.30 $ 84,000 $ 84,000 Supplies 672,000 1.00 0.20 56,000 117,000 Fixed MOH Supervision 571,200 0.85 0.17 47,600 41,000 Utilities 369,600 0.55 0.11 30,800 55,000 Depreciation 705,600 1.05 0.21 58,800 58,800 Total $ 3,326,400 $ 4.95 0.99 $ 277,200 $ 355,800Labor and supervision 500,000 Setup and facility costs 300,000 Utilities 360,000 $ 1 ,160,000 Total budgeted costs for the period H More Info X Jeff Boone budgets 100,000 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 600 setup hours. The budgeted quantity of cost driver for utilities is 9,000 machine-hours. Jeff has estimated that HTT uses 60% of the test-hours, 20% of the setup-hours, and half the machine-hours. Print DoneFind the single rate for operating costs based on test-hours and the hourly billing rate for HTI' and ACT. Find the three activity-based rates for operating costs. 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 Precision? If Precision's competition all charge $19.50 per hour for arctic testing, what can Precision do to stay competitive? Precision Laboratories evaluates the reaction of materials to After analyzing the company data, he has divided operating costs extreme increases in temperature. Much of the company's early into the following three cost pools: growth was attributable to government contracts, but recent growth a (Click the icon to view the cost pools.) has come from expansion into commercial markets. 0 (Click the icon to view the current overhead allocation 0 (Ohm the '00" to \"9'" the budgeted Information.) information.) Read the muirements. 0 (Click the icon to view the proposed change.) Requirement 1. Find the single rate for operating costs based on test-hours and the hourly billing rate for HTT and ACT. (Round your answers to the nearest cent.) The single rate for operating costs based on test-hours is |:| per testing hour