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Hello. I'm needing help on question 5-52 (1-4) . I dont even know how to start since it dont give direct material or direct labor
Hello. I'm needing help on question 5-52 (1-4) . I dont even know how to start since it dont give direct material or direct labor information.
r Tulsa Medical Supply Company has established the following activity cost pools and Acth cost drivers. Budgeted Overhead Cost Budgeted Level for Cost Driver Driv (LO 5-5 Activity Cost Pool Machine setups. Material handling Cost Driver Number of setups Weight of raw material Weight of hazardous Pool Rate $2,000 per setup $2 per pound $250,000 75,000 125 37,500 lb. rate Hazardous waste control Quallty control Other overhead costs... Total 25,000 75,000 200,000 $625,000 chemicals used Number of inspections Machine hours 5,000 lb. 1,000 $5 per pound $75 per inspection $10 per machine hour 20,000 An order for 1,000 boxes of medical-testing agent has the following production requirements Machine setups Raw material Hazardous materials Inspections Machine hours 5 setups 10,000 pounds 2,000 pounds 10 inspections 500 machine hours Required: 1. Compute the total overhead that should be assigned to the medical-testing agent order. 2. What is the overhead cost per box of testing agent? 3. Suppose Tulsa Medical Supply Company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour. 4. Under the approach in requirement (3), how much overhead would be assigned to the medical- testing agent order? a. In total. b. Per box of testing agentStep by Step Solution
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