How were the individual test costs calculated to get the answer of the total annual cost? 6.

How were the individual test costs calculated to get the answer of the total annual cost?

 

Transcribed Image Text:

6. Test Costs summed for the 5 activities Test A = $2.00+ $3.85 + $3.39 + $1.82 + $.99 = $12.06 Test B = $2.00+ $3.85 + $16.95 + $1.82 + $.99 = $25.62 Test C = $2.00+ $7.69 + $33.90 + $1.82 + $.99 = $46.41 Test D = $2.00 + $7.69 +$67.80 + $3.64 +$.99 = $82.13 7. Summed Test Costs multiplied against Total Test Number Test A =$12.06 x 2,000 = $24,120 Test B = $25.62 x 1,500 = $38,430 Test C = $46.41 x 1,000 = $46,410 Test D = $82.13 x 500 = $41,065 Total = $150,025 variance is due to decimal place rounding but is in the range of the total $150,000 lab overhead costs. 6. Test Costs summed for the 5 activities Test A = $2.00+ $3.85 + $3.39 + $1.82 + $.99 = $12.06 Test B = $2.00+ $3.85 + $16.95 + $1.82 + $.99 = $25.62 Test C = $2.00+ $7.69 + $33.90 + $1.82 + $.99 = $46.41 Test D = $2.00 + $7.69 +$67.80 + $3.64 +$.99 = $82.13 7. Summed Test Costs multiplied against Total Test Number Test A =$12.06 x 2,000 = $24,120 Test B = $25.62 x 1,500 = $38,430 Test C = $46.41 x 1,000 = $46,410 Test D = $82.13 x 500 = $41,065 Total = $150,025 variance is due to decimal place rounding but is in the range of the total $150,000 lab overhead costs.

Answer rating: 100% (QA)

ANSWER The individual test costs were calculated by adding up the costs of each activity involved in ... View the full answer