The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Machine setups Material handling Hazardous waste control Quality control Other overhead costs Total Budgeted Overhead Cost $250,000 75,000 25,000 75,000 200,000 $625,000 Cost Driver Number of setups Weight of raw material Weight of hazardous chemicals used Number of inspections Machine hours Budgeted Level for Cost Driver 125 37,500 lb. 5,000 lb. 1,000 20,000 Pool Rate $2,000 per setup $ 2 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 Raw material Hazardous materials Inspections Machine hours 5 setups 10,000 pounds 2,000 pounds 10 inspections 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