Vineyard lest Laboratories does heat testing $($HT$)$ and stress testing $($$T$)$ on materials and operates at capacity. Under its current simplecosting system, Vineyard aggregates all operating costs of$$1,275\mathrm{.}000$ into a single overhead cost pool Vineyard calculates a rate per testhour of$$15($$$1\mathrm{.}275\mathrm{.}000+85\mathrm{.}000$ otal testhours$).$ HT uses $60\mathrm{.}000$ testhours, and ST uses $25\mathrm{.}000$ testhours. Gary Lawler, Vineyard's controller, believesthat there is enough variation in test procedures and cost structures to establish separate cosing and biling rates for HT and ST$.$ The market for testsenvices is becoming competitive. Without this information, any miscosting and mispricing of its sevices could cause Vinevard to lose business.Lawler divides Vineyard's costs into four activity$-$cost categories.