Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Budgeted Overhead Activity Cost Pool Cost Cost
The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Budgeted Overhead Activity Cost Pool Cost Cost Driver Machine setups $250,000 Number of setups Budgeted Level for Cost Driver 125 Pool Rate $2,000 per setup Material handling 75,000 Weight of raw material 37,500 lb. $ 2 per pound Hazardous waste control 25,000 Quality control 75,000 Weight of hazardous chemicals used Number of inspections 5,000 lb. $ 5 per pound 1,000 $ 75 per inspection Other overhead costs 200,000 Machine hours 20,000 $ 10 per machine hour Total $625,000 Required: 1. Calculate the unit cost of a production order for 100 specially coated plates used in cancer testing. In addition to direct material costing $120 per plate and direct labor costing $40 per plate, the order requires the following: (Round intermediate calculations and final answer to 2 decimal places.) Machine setups Raw material Hazardous materials Inspections Machine hours 3 900 pounds 300 pounds 3 50
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started