Refer to the original data given in the preceding problem for Tulsa Medical Supply Company.

Required:

1. Calculate the unit cost of a production order for 100 specially coated plates used in cancer testing.

In addition to direct material costing $120 per plate and direct labor costing $40 per plate, the order requires the following:

2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. (This will be an extension of the spreadsheet constructed for the preceding problem.) Show how the solution will change if the data given in the preceding problem change as follows: the overhead associated with machine setups is $375,000, and there are 500 inspections budgeted.

Transcribed Image Text:

Machine setups Raw material Hazardous materials Inspections Machine hours 3 900 pounds 300 pounds 3 50