Orange Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Orange aggregates all operating costs of $ 975 comma 000 into a single overhead cost pool. Orange calculates a rate per test-hour of $ 13 ($ 975 comma 000 75 comma 000 total test-hours). HT uses 55 comma 000 test-hours, and ST uses 20 comma 000 test-hours. Gary Sarsfield, Orange'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 Orange to lose business. Sarsfield divides Orange's costs into four activity-cost categories. LOADING...(Click the icon to view the activity-cost categories.) Read the requirementsLOADING.... Question content area bottom Part 1 Requirement 1. Classify each activity cost as output unit-level, batch-level, product- or service-sustaining, or facility-sustaining. Explain each answer. Cost Item Cost-type a. Direct labor Output unit-level b. Equipment-related costs (rent, maintenance, energy, etc.) Output unit-level c. Setup costs Batch-level d. Costs of designing tests Service-sustaining Part 2 Output unit-level costs are related to