Rapid City Technology, Inc. manufactures chemicals used in agricultural pest control. The controller has established the following activity cost pools and cost drivers.

Activity Cost Pool

Budgeted Overhead Cost

Cost Driver

Budgeted Level for Cost Driver

Pool Rate

Machine setups

$

1,000,000

Number of setups

250

$

4,000 per setup

Material handling

300,000

Weight of raw material

75,000

Ib.

$

4 per pound

Hazardous waste control

100,000

Weight of hazardous chemicals used

10,000

Ib.

$

10 per pound

Quality control

300,000

Number of inspections

2,000

$

150 per inspection

Other overhead costs

800,000

Machine hours

40,000

$

20 per machine hour

Total

$

2,500,000

An order for 1,000 boxes of a chemical product designated JLRP has the following production requirements.

Machine setups	6 setups
Raw material	9,000 pounds
Hazardous materials	2,100 pounds
Inspections	8 inspections
Machine hours	550 machine hours
1.Compute the total overhead that should be assigned to the JLRP order. 2.What is the overhead cost per box of JLRP chemicals? 3.Suppose the company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour. 4.Suppose the company were to use a single predetermined overhead rate based on machine hours, how much overhead would be assigned to the JLRP chemical order? a) in total? b) per box