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The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Budgeted Overbead Activity Cost Pool Cost Cost Driver

The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Budgeted Overbead Activity Cost Pool Cost Cost Driver Machine setups $375,000 Number of setups Material handling 60,000 Weight of raw material Budgeted Level for Cost Driver 125 30,000 lb. Pool Rate $ $3,000 per setup 2 per pound Hazardous waste control 25,000 Weight of hazardous chemicals used 5,000 lb. 5 per pound Quality control 75,000 Number of inspections: 1,000 $ 75 per inspection Other overhead costs: 200,000 Machine hours 20,000 $ 10 per machine hour Total $735,000 An order for 5,000 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 700 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 agent. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Compute the total overhead that should be assigned to the medical-testing agent order. What is the overhead cost per box of testing agent? (Round "Overhead cost" to 2 decimal places.) Total overhead Overhead cost per box Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Suppose Tulsa Medical Supply Company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour. (Round your answer to 2 decimal places.) Overhead rate per machine hr. Req 1 and 2 Req 4 > Req 1 and 2 Req 3 Req 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. (Round your answer to 2 decimal places.) a. Total overhead b. Overhead cost per box < Req 3 Req 4

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