The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Machine setups Material handling Hazardous waste control Quality control Other overhead costs Total Budgeted Overhead Cost $ 330,000 Number of setups Budgeted Level for Cost Driver Pool Rate $3,000 per setup Cost Driver 110 Weight of raw material 90,000 70,000 Weight of hazardous chemicals used 150,000 Number of inspections 400,000 Machine hours 30,000 lb. $ 3 per pound 7,000 lb. $ 10 per pound 2,000 $ 75 per inspection 20,000 $ 20 per machine hour $1,040,000 An order for 5,000 boxes of medical-testing agent has the following production requirements. Machine setups Raw material Hazardous materials Inspections Machine hours 7 setups 12,000 pounds 4,000 pounds 10 inspections 500 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.