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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

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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 test- ing. In addition to direct material costing $120 per plate and direct labor costing $40 per plate, the order requires the following: Machine setups Raw material Hazardous materials Inspections Machine hours 3 900 pounds 300 pounds 3 50 The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Problem 5-52 Activity Cost Pools: Cost Drivers, Pool Rates (LO 5-1,5-2,5-3,5-4 5-5,5-7) 3. Predetermined overhead Tate: $31.25 per machine hr. Budgeted Overhead Cost Budgeted Level for Cost Driver 125 37,500 lb Pool Rate $2,000 per setup $2 per pound $250.000 75,000 Activity Cost Pool Machine setups Material handling Hazardous waste control Quality control Other overhead costs.... Total Cost Driver Number of setups Weight of raw material Weight of hazardous Chemicals used Number of inspections Machine hours 25,000 75,000 200,000 $625,000 5,000 lb 1.000 20,000 $5 per pound $75 per inspection $10 per machine hour 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 Chapter 5 Activity-Based Costing and Management 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

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