Vineyard test laboratories does heat testing (ht) and stress testing (st) on materials and operates at capacity. under its current simple costing system, vineyardvineyard aggregates all operating costs of $ 1 comma 190 comma 000$1,190,000 into a single overhead cost pool. vineyardvineyard calculates a rate per test-hour of $ 17$17 ($ 1 comma 190 comma 000$1,190,000 / 70 comma 00070,000 total test-hours). ht uses 40 comma 00040,000 test-hours, and st uses 30 comma 00030,000 test-hours. gary celesteceleste, vineyardvineyard'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 vineyardvineyard to lose business. celesteceleste divides vineyardvineyard's costs into four activity-cost categories.