Question Help Milton Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Milton aggregates all operating costs of $1,200,000 into a single overhead cost pool. Milton calculates a rate per test-hour of $16 ($1,200,000 / 75,000 total test-hours). HT uses 50,000 test-hours, and ST uses 25,000 test-hours. Gary Savarese, Milton's controller, believes that there is enough variation in test procedures and cost ork structures to establish separate costing and billing rates for HT and ST The market for test services is becoming competitive. Without this information, any miscosting and mispricing of its services could cause Milton to lose business. Savarese divides Milton's costs into four activity-cost categories (Click the icon to view the activity-cout categories.) z/Test Read the requirements Requirement 1. Classity each activity cost as output unit-level, batch-level, product or service-sustaining, or facility-sustaining. Explain each answer Cost-type Cost Item a. Direct labor b. Equipment-related costs (rent, maintenance, energy, etc.) c. Setup osts d. Costs of designing tests Output unit-level costs are Choose from any list or enter any number in the input fields and then continue to the next question Save for later EN met Question Help Mihon Test Laboratories does heal testing (HT) and stress testing (ST) on materials and operates at capacity. Under is current simple costing system, Milton aggregates all operating costs of $1,200,000 into a single Overhead cost pool. Milton calculates a rate per test-hour of $16 ($1.200,000/75,000 totaltest-hours). HT uses 50,000 test hours, and ST 25,000 test hours. Gary Savarese, Miton's controller, believes that there is enough variation in test procedures and cost structures to establish separate costing and biling rates for HT and ST. The market for test services is becoming competitive. Without this information, any miscosting and mispring of its services could cause Mion to lose business. Savarese divides Milton's costs into four afvity-cost categories Click the icon to view the activity-cost categories) Read the requirements Output level costs are Bach-level costs are Service-sustaining costs are Facility-sustaining costs we Requirement 2. Calculate the cost perest hour for HT ST. Explain briefly the reasons why these numbers differ from the $16 per test hour that Milton calculated using a simple costing system First, deermine the formula used to calculate the cost for each wolvity in each testtype Cost per activity Calculate the cost of each activity and the total cost of the heat testing and stress testing Heal Test Stress Test (ST) To Total Cod Director Em Choose from any or enter any number in the input fields and then continue to the next question Question Help Mihon Test Laboratories does heating (MT) and stress testing (ST) on materials and operates at capacity Under its current simple costing system, Milon aggregates all operating costs of $1.200.000 into a single overhead cool pool. Mihon calculates arabe per te hour of $16 ($1.200,000 / 75,000 totalt hours). HT uses 50,000 tost hours, and ST ses 25.000 fest hours. Gary Savarese, Mitor's controller, believes that there is enough variation in test procedures and cost structures to establish separate costing and billing rates for HT and ST The market for test services is becoming competitive Without this information, ary misconting and mipricing of its services could cause Milton to lose business. Savarese divides Miton's costs into four activity cost categories Click the icon to view the activity-cost categories Read the requirements Direct labor Equipment Satup Design Total Determine the form to call the HT Copertest hour and enter the amounts to calculate the round the rate to the rest cent) HT Cont pour hou Din the forma to the ST per te hour and enter the amounts to the end the rate the record) ST Core pers The cost od ST ofrom the other the place Question Help iton Test Laboratories does heat testing (MT) and stress testing (ST) on materials and operates at capacity Under its current simple costing system, Milon aggregates al operating costs of $1,200,000 into a single overhead cost pool. Milton calculates a rate per test hour of $16 ($1,200,000 / 75,000 totaltest hours), HT uses 50,000 test hours, and ST ses 25,000 test-hours. Gary Savarese, Milton's controller, believes that there s enough variation in test procedures and cost structures to establish separate costing and billing rates for HT and ST The market for lest services is becoming competitive Without this information, any miscosting and mispring of its services could cause Milton to lose business Savarese divides Minor's costs into four activity-cost categories (Click the loon to view the activity-cost categories.) Read the requirements pertest hour Determine the formula to calculate the ST cost per hour and enter the amounts to calculate the rate (Round the rate to the nearest cont.) ST Cost perfect hoor Der best hour The cost per hour for HT and ST offers from the cost per tothout using the simple because Requirement plain the couracy of the product costs calculated using the simple costing system and the ABC system. How i Milor's management use the contrary and ABC Womation to be managers business with the ADC wystad of the simple coing system. The productos pros Management on the ABC Choose your thousand then conto the rest
