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The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Machine setupa Material handling Hazardous
The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Machine setupa Material handling Hazardous waste control Quality control Other overhead costs Total Budgeted Overhead Cost Cost Driver $375,000 Number of setups 75,000 Weight of raw material 25,000 Weight of hazardous chemicals used 150,000 Number of inspections 250,000 Machine hours $875,000 Budgeted Level for Coat Driver 150 25,000 lb. 5,000 lb. 2.000 25,000 Pool Rate $2,500 per setup $ per pound $ 5 per pound $ 75 per inspection $ 10 per machine hour An order for 1,000 boxes of medical-testing agent has the following production requirements. Machine setups 7 setup Raw material 12,000 pounds Hazardoun materials 5,000 pounds Inspections 10 inspection 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. 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 cout per box Req3 ) 9 agent order? b. Per box of testing agent. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 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 her Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req4 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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