The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers.

Activity Cost Pool		Budgeted Overhead Cost	Cost Driver	Budgeted Level for Cost Driver	Pool Rate
Machine setups		300,000	Number of setups	100	$3000 per setup
Material handling		90,000	Weight of raw material	30,000 lb.	$ 3 per pound
Hazardous waste control		60,000	Weight of hazardous chemicals used	6,000 lb.	$10 per pound
Quality control		225,000	# of inspections	3,000	$ 75 per inspection
Other overhead costs		400,000	Machine hours	20,000	$ 20 per machine hour
Total		$1,075,000

An order for 5,000 boxes of medical-testing agent has the following production requirements.

Machine setups		7 setups
Raw material		10,000 pounds
Hazardous materials		2,000 pounds
Inspections		10 inspections
Machine hours		700 machine hours

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.