The controller for Tulsa Medical Supply Company 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 $ 300,000 Number of setups 150 $ 2,000 per setup Material handling 80,000 Weight of raw material 40,000 pound $ 2 per pound Hazardous waste control 25,000 Weight of hazardous chemicals used 5,000 pound $ 5 per pound Quality control 150,000 Number of inspections 2,000 $ 75 per inspection Other overhead costs 200,000 Machine hours 20,000 $ 10 per machine hour Total $ 755,000 An order for 5,000 boxes of medical-testing agent has the following production requirements. Machine setups 7 setups Raw material 12,000 pounds Haza

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 agent.