(Click the icon to view the activity-cost categories.) Read th Requirement 1. Classify each activity cost as output unit-level, batch-level, product- or service-sustaining, or facility-sustaining. Explain each answer. Output unit-level costs are related to the number of units tested; required for each unit tested. Batch-level costs are related to a group of units of the service. They are not related to the number of units tested. Service-sustaining costs are costs used to support individual services regardless of the number of units or batches tested. Facility-sustaining costs are costs that can not be traced to individual services but support the company as a whole. Requirement 2. Calculate the cost per test-hour for HT and ST. Explain briefly the reasons why these numbers differ from the $16 per test-hour that H First, determine the formula used to calculate the cost for each activity in each test type. Activity rate Activity hours per test type = Calculate the cost of each activity and the total cost of the heat testing and stress testing. Data table a. Direct-labor costs, $105,000. These costs can be directly traced to HT, $75,000, and ST, $30,000. b. Equipment-related costs (rent, maintenance, energy, and so on), $450,000. These costs are allocated to HT and ST on the basis of test-hours. c. Setup costs, $425,000. These costs are allocated to HT and ST on the basis of the number of setup-hours required. HT requires 12,000 setup-hours, and ST requires 5,000 setup-hours. d. Costs of designing tests, $270,000. These costs are allocated to HT and ST on the basis of the time required for designing the tests. HT requires 2,500 hours, and ST requires 2,000 hours