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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 $312,500 Number of setups Material handling 50,000 Weight of raw material Budgeted Level for Cost Driver 125 25,000 lb. Pool Rate $2,500 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 250,000 Machine hours 25,000 $ 10 per machine hour Total $712,500 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 600 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. 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 Req 1 and 2 Req 3 >
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