= Homework: Chapter 5 Homework Question 9, E5-19 (similar to) HW Score: 26.67%, 8 of 30 points Part 1 of 13 O Points: 0 of 2 Save Hull Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Hull aggregates all operating Question list K costs of $1,300,000 into a single overhead cost pool. Hull calculates a rate per test-hour of $13 ($1,300,000 = 100,000 total test-hours). HT uses 60,000 test-hours, and ST uses 40,000 test-hours. Gary Maloney, Hull'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 Hull to lose business. Maloney divides Hull's costs into four activity-cost categories. Question 5 (Click the icon to view the activity-cost categories.) . X Data table - X Requirements a. Direct-labor costs, $243,000. These costs can be directly traced to HT, $183,000, level and ST, $60,000. 1. Classify each activity cost as output unit-level, batch-level, product- or b. Equipment-related costs (rent, maintenance, energy, and so on), $400,000. These service-sustaining, or facility-sustaining. Explain each answer. costs are allocated to HT and ST on the basis of test-hours. 2 Calculate the cost per test-hour for HT and ST. Explain briefly the reasons C. Setup costs, $385,000. These costs are allocated to HT and ST on the basis of the why these numbers differ from the $13 per test-hour that Hull calculated number of setup-hours required. HT requires 13,500 setup-hours, and ST requires using its simple costing system. tc.) 4,000 setup-hours. 3. Explain the accuracy of the product costs calculated using the simple d. Costs of designing tests, $252,000. These costs are allocated to HT and ST on the costing system and the ABC system. How might Hull's management use the cost hierarchy and ABC information to better manage its business? basis of the time required for designing the tests. HT requires 2,800 hours, and ST requires 1,400 hours Print Done Print Done Help me solve this Etext pages Get more help - Clear all Check answerHomework: Chapter 5 Homework Question 9, E5-19 (similar to) HW Score: 26.67%, 8 of 30 points Save Part 1 of 13 O Points: 0 of 2 Hull Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Hull aggregates all operating Question list K costs of $1,300,000 into a single overhead cost pool. Hull calculates a rate per test-hour of $13 ($1,300,000 = 100,000 total test-hours). HT uses 60,000 test-hours, and ST uses 40,000 test-hours. Gary Maloney, Hull'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 Hull to lose business. Maloney divides Hull's costs into four activity-cost categories. Question 5 (Click the icon to view the activity-cost categories.) Read the requirements. Question 6 Requirement 1. Classify each activity cost as output unit-level, batch-level, product- or service-sustaining, or facility-sustaining. Explain each answer. Question 7 Cost Item Cost-type a. Direct labor Question 8 b. Equipment-related costs (rent, maintenance, energy, etc.) c. Setup costs O Question 9 d. Costs of designing tests O Question 10