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The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Budgeted Budgeted Overhead Level for Cont Activity Cost

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The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Budgeted Budgeted Overhead Level for Cont Activity Cost Pool Cost Cost Driver Driver Pool Rate Machine setups $ 330,000 110 $3,000 per setup Material handling Number of setups 120,000 Weight of raw material 40, 000 1b. 3 per pound Hazardous waste control 70,000 Weight of hazardous chemicals used 7, 000 1b. 10 per pound Quality control 150,000 Number of inspections 2,000 5 75 per inspection Other overhead costs 400, 000 Machine hours 20,000 S 20 per machine hour Total $1, 070,000 An order for 5,000 boxes of medical-testing agent has the following production requirements. Machine setups 7 bot ups Raw material 12, 000 pounds Hazardous materials 5,000 pounds Inspections 10 inspect Lone Machine hours 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

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