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Please answer questions 1 through 4. Thank you!! The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers
Please answer questions 1 through 4. Thank you!!
The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers Budgeted Overhead Budgeted Level for Cost Driver Activity Cost Pool Cost $250, 000 Nmber of setups Cost Driver Pool Rate Machine setups Material handling Hazardous waste contro1 Quality control Other overhead costs Total 125 37,500 lb. 5,000 lb. $2,000 per setup 75,000 Weight of raw material 25,000 Weight of hazardous chemicals used 75,000 Number of inspections 2 per pound 5 per pound $75 per inspection 1,000 20,000 200,000 Machine hours $ 10 per machine hour $625, 000 An order for 1,000 boxes of medical-testing agent has the following production requirements Machine setups Raw material1 Hazardous materials Inspections Machinehours 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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