1 answer

Green Test Laboratory (GTL) performs heat testing and stress testing on materials and operates at full...

Question:

Green Test Laboratory (GTL) performs heat testing and stress testing on materials and operates at full capacity. Under its current simple costing system, GTL aggregates all operating costs of $2,404,000 into a single cost pool. GTL calculates a rate per test-hour of $18.78, ($2,404,000/128,000 total tests-hours). Heat testing uses 80,000 test-hours and stress testing uses 48,000 test-hours. Lee Chang, GTL’s management accountant, believes that there is enough variation in test procedures and cost structures to establish separate costing and billing rates for heat testing and stress testing. The market for test services is becoming increasingly competitive. Without this information, any incorrect costing and pricing of its services could cause GTL to lose business. Lee divides GTL’s costs into four activity cost categories as follows:

  1. Direct labour costs, $450,000. These costs can be directly traced to heat testing, $350,000, and to stress testing, $100,000.
  2. Equipment related costs (e.g. rent, maintenance, energy), $750,000. These costs are allocated to heat and stress testing on the basis of test hours.
  3. Set up costs, $700,000. These costs are allocated to heat and stress testing on the basis of the number of set up hours required. Heat testing requires 13,500 set up hours and stress testing requires 4,000 set up hours.
  4. Costs of designing tests, $504,000. These costs are allocated to heat and stress testing on the basis of the time required to design the tests. Heat testing requires 4,200 design hours, and stress testing requires 2,100 design hours.

a) Calculate the cost per test hour for heat testing and for stress testing.


Answers

Calculate requirement as follows: A 1 Particulars 2 Direct Labor 3 Equipment related cost (Based on test hours) 4 Setup cost

.

Similar Solved Questions

1 answer
Review current types of healthcare delivery systems in the united states and contrast the current status...
review current types of healthcare delivery systems in the united states and contrast the current status with the reform models or revisions proposed...
1 answer
16. When K. of Acid-1 is larger than that of Acid-2, Acid-1 is a. Strong Acid...
16. When K. of Acid-1 is larger than that of Acid-2, Acid-1 is a. Strong Acid b. Weak Acid c. Strong Base d. Weak Base H' when it reacts with a strong 17. Water is amphoteric substance which will base. (donate or accept] 18. The value of Kwat 25 degree Celsius M (acidic, basic or 19. If [OH) is ...
1 answer
In order to conduct a hypothesis test for the population mean, a random sample of 24...
In order to conduct a hypothesis test for the population mean, a random sample of 24 observations is drawn from a normally distributed population. The resulting sample mean and sample standard deviation are calculated as 4.8 and 0.8, respectively.(You may find it useful to reference the appropriate ...
1 answer
Monopoly and Natural Monopoly I'm looking for a scholarly definition about the terms monopoly and natural...
Monopoly and Natural Monopoly I'm looking for a scholarly definition about the terms monopoly and natural monopoly (hopefully thats the correct way of asking)? Then what is the comparison and contrast of social costs and benefits of a monopoly? What are two options for society to consider when d...
1 answer
Save Homework: HW 05: $3.1 and $3.2 Score: 0 of 1 pt 3.2.29 19 of 24...
Save Homework: HW 05: $3.1 and $3.2 Score: 0 of 1 pt 3.2.29 19 of 24 (21 complete) HW Score: 75.97%, 18.23 of 24 pts Question Help Scores of an IQ test have a bell-shaped distribution with a mean of 100 and a standard deviation of 10. Use the empirical rule to determine the following (a) What percen...
1 answer
How do you solve the system of equations #8x - 4y = 24# and #2x + y = 6#?
How do you solve the system of equations #8x - 4y = 24# and #2x + y = 6#?...
1 answer
Please answer 1 and 2 with explanation. EIGEN VALUE-VECTORS 1) Find the eigenvalues and their corresponding...
Please answer 1 and 2 with explanation. EIGEN VALUE-VECTORS 1) Find the eigenvalues and their corresponding eigenvectors of the matrix 1 3 2 ) A=| 10 -2 ) 2) Find the eigenvalues and their corresponding eigenvectors of the matrix Tunin o diaconal matrix. Can matrix A be...
1 answer
I need help getting started on this question: In the healthcare field, different groups of healthcare professionals adhere to their own codes of ethics
I need help getting started on this question:In the healthcare field, different groups of healthcare professionals adhere to their own codes of ethics.Using any resources available to you, research two different codes of ethics for any two groups of healthcare professionals. You can research groups ...
1 answer
Please complete all parts to the problem. added extra pictures of answer choices to choose from...
please complete all parts to the problem. added extra pictures of answer choices to choose from so its easier. 1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but ...
1 answer
1)Jay Co. is a contract manufacturer that produces two products, Prod A and Prod B; and...
1)Jay Co. is a contract manufacturer that produces two products, Prod A and Prod B; and supply the two products to various retailers. The numbers of units for Prod A and Prod B that Jay Co is contracted to supply for next four months are given in the following table: Month 1 Month 2 Month 3 Mont...
1 answer
Letang Corporation expects an EBIT of $19.750 every year forever. The company currently has no debt,...
Letang Corporation expects an EBIT of $19.750 every year forever. The company currently has no debt, and its cost of equity is 15 percent. The company can borrow at 10 percent and the corporate tax rate is 35. Requirement 1: What is the current value of the company? (Do not round intermediate calcul...
1 answer
Please help homework assignment due tonight! Homework: Hw#4b_Ch #9 Save Score: 0 of 1 pt 4...
please help homework assignment due tonight! Homework: Hw#4b_Ch #9 Save Score: 0 of 1 pt 4 of 11 (9 complete) HW Score: 81.82%, 9 of 11 pts 9.7.14 Question Help The measurements given below were recorded for the drying time, in hours of a certain brand of latex paint. Assuming that the VI measu...
1 answer
Choose any constructive method you wish, and demonstrate that L is regular. You do not need...
Choose any constructive method you wish, and demonstrate that L is regular. You do not need an inductive proof, but you should explain how your construction accounts for each rule. Let L be the language over {a,b,c} accepting all strings so that: 1. No b's occur before the first c. 2. No a's...
1 answer
A portable conveyor user by roofers is 11.0m long. The angle between the conveyor and the ground can be adjusted from 30° to 70°. What is the range of heights that the conveyor can reach?
A portable conveyor user by roofers is 11.0m long. The angle between the conveyor and the ground can be adjusted from 30° to 70°. What is the range of heights that the conveyor can reach?...
1 answer
What kind of sampling technique would you recommend for this research topic? -the passage through menarche among Haitian...
What kind of sampling technique would you recommend for this research topic? -the passage through menarche among Haitian refugees...
1 answer
Every SN1 reaction does not always have a competing E1 reaction. Explain why that is and...
Every SN1 reaction does not always have a competing E1 reaction. Explain why that is and show examples...
1 answer
For the reaction H_2(g) + S(g) H_2S(g) the initial concentrations are 0.060 M H_2, 0.080 MS,...
For the reaction H_2(g) + S(g) H_2S(g) the initial concentrations are 0.060 M H_2, 0.080 MS, and no H_2S. At equilibrium, [H_2] = 0.010 M. Calculate the concentrations of S and H_2S at equilibrium. (Be sure to give your answers to three decimal places.) M S M H_2 S Calculate the value of K under the...