WI Homework: Chapter 5 Homework Question 1, E5-19 (similar to) Part 7 of 13 HW Score: 5.26%, 0.26 of 5 points Points: 0.26 of 1 Save Plymouth Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Plymouth aggregates all operating costs of $1,190,000 into a single overhead cost pool. Plymouth calculates a rate per test-hour of $17 ($1,190,000 70,000 total test-hours). HT uses 40,000 test-hours, and ST uses 30,000 test-hours. Gary Celeste, Plymouth'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, any miscosting and mispricing of its services could cause Plymouth to lose business. Celeste divides Plymouth's costs into four activity-cost categories. SH(Click the icon to view the activity-cost categories.) 11 Read the requirements 3 26 p 5 First, determine the formula used to calculate the cost for each activity in each test type. Activity rate Activity hours per test type Cost per activity Calculate the cost of each activity and the total cost of the heat testing and stress testing. Heat Test (HT) Total Cost Direct labor 90000 Equipment S Setup Design Total