Question three 16 points) CoTech Laboratories does heat testing (T) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, CoreTech aggregates all operating costs of $1,000,000 nd single overhead cost pool CoreTech calculates a rate per test-hour of $21 ($1,890,000 90,000 total test-hours). IT uses 50,000 test-hours, and ST uses 40,000 te hos Gary Cale Core Tek's controller, beleves that these is enough variation in test procedures and cost structures to establish separate costing and billing rates for IT and ST The market for test serves in beng competitive Without this information, any miscosting and mispricing of its services could cause CoreTech to lose business. Celeste divides CoreTech's costs into fine activity-cost categories a Direct labor costs, $276.000. These costs can be directly traced to HT, $204,000, and ST. $72.000. b Equipment-related costs (rent, maintenance, energy, and so on), $495,000. These costs are allocated to HT and ST on the basis of test-hours. c. Setup costs, $630,000. These costs are allocated to HT and ST on the basis of the number of setuphours required. HT requires 15.000 setup-hours, and ST requires 6.000 setup hours d. Costs of designing tests, $489,000. These costs are allocated to HT and ST on the basis of the time required for designing the tests. HT requires 4.000 hours and ST requires 2.000 hours. Required Calculate the cost per test-hour for HT and ST. Explain briefly the reasons why these numbers differ from the $21 per test-hour that CoreTech calculated using its simple costing system. For this toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) T 140x A