Transformed FBoxSphereBounds sphere radius not matching with scaling

When viewing the Sphere Radius around a Static mesh actor it appears to greatly exceed the mesh when setting the Z transform to 4 from 1.

1. Take a static mesh and use it to make a static mesh actor (The 400x400 floor mesh was used in this case)
2. Enable the Sphere Radius from the Bounds setting. ( Show > Advanced > Bounds)
3. Drag the static mesh actor into the level and notice the sphere radius just encompass the floor mesh.
4. Set the Z scale of the transform to 4 and check the Sphere Bounds again.
5. Notice now that the Sphere Bounds greatly exceeds the size of the mesh.