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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 Cost Activity Cost
The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers Budgeted Budgeted Overhead Level for Cost Activity Cost Pool Cost Cost Driver Driver Pool Rate Machine setups $250,000 Number of setups 180 $2,500 per setup Material handling 75,000 Weight of raw material 25,000 lb. 3 per pound Hazardous waste control 30,000 Weight of hazardous chemicals used 6,000 lb. 5 Quality control 225,000 Number of inspections 5 per pound 3,900 5 75 per inspection Other overhead costs 250.00 Machine hours 25, cee 5 10 per machine hour Total $830,000 An order for 1.000 boxes of medical testing agent has the following production requirements Machine setups Raw material Hazardous waterials Inspections Machine hours 7 setups 10,000 pounds 5,000 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 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? b. Per box of testing agent a in total Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 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 Real Req3 > Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 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. (Round your answer to 2 decimal places.) a Total overhead b Overhead cost per box
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