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	$	200,000		Number of setups		100			$	2,000	per setup
Material handling		120,000		Weight of raw material		40,000	lb.		$	3	per pound
Hazardous waste control		30,000		Weight of hazardous chemicals used		6,000	lb.		$	5	per pound
Quality control		225,000		Number of inspections		3,000			$	75	per inspection
Other overhead costs		200,000		Machine hours		20,000			$	10	per machine hour
Total	$	775,000

An order for 1,000 boxes of medical-testing agent has the following production requirements.

Machine setups	7	setups
Raw material	12,000	pounds
Hazardous materials	5,000	pounds
Inspections	10	inspections
Machine hours	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.

Requirement 1 & 2: 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)

Requirement 3: Suppose Tulsa Medical Supply Company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour. (Round your answer to 2 decimal places.)

Overhead rate _____(per machine hour)

Requirement 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.) Total overhead ____ Overhead cost ___ (per box)