Milton Test Laboratories does heat testing(HT) and stress testing(ST) on materials and operates at capacity....
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Milton Test Laboratories does heat testingHT and stress testingST on materials and operates at capacity. Under its current simple costing system, MiltonMilton aggregates all operating costs of $ comma comma $ into a single overhead cost pool. MiltonMilton calculates a rate per testhour of $ $$ comma comma $: comma total testhours HT uses comma testhours, and ST uses comma testhours. Gary CookCook MiltonMiltons controller believes that there is enough variation in test procedures and cost structures to establish separate costing and billing rates for HT and ST The market for test services is becoming competitive. Without this information, any miscosting and mispricing of its services could cause MiltonMilton to lose business. CookCook divides MiltonMiltons costs into four activitycost categories.
Milton Test Laboratories does heat testingHT and stress testingST on materials and operates at capacity. Under its current simple costing system, MiltonMilton aggregates all operating costs of $ comma comma $ into a single overhead cost pool. MiltonMilton calculates a rate per testhour of $ $$ comma comma $: comma total testhours HT uses comma testhours, and ST uses comma testhours. Gary CookCook MiltonMiltons 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 MiltonMilton to lose business. CookCook divides MiltonMiltons costs into four activitycost categories.
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