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Vineyard lest Laboratories does heat testing ( HT ) and stress testing ( $T ) on materials and operates at capacity. Under its current simplecosting
Vineyard lest Laboratories does heat testing HT and stress testing $T on materials and operates at capacity. Under its current simplecosting system, Vineyard aggregates all operating costs of$ into a single overhead cost pool Vineyard calculates a rate per testhour of$$ otal testhours HT uses testhours, and ST uses testhours. Gary Lawler, Vineyard's controller, believesthat there is enough variation in test procedures and cost structures to establish separate cosing and biling rates for HT and ST The market for testsenvices is becoming competitive. Without this information, any miscosting and mispricing of its sevices could cause Vinevard to lose business.Lawler divides Vineyard's costs into four activitycost categories.
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