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The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Budgeted Level for Cost Driver 125 30,000 pound Activity Cost Pool Machine setups Material handling Hazardous waste control Quality control Other overhead costs Total Machine setups Raw material Budgeted Overhead Cost $ 375,000 60,000 Hazardous materials Inspections Machine hours 25,000 75,000 200,000 $ 735,000 Cost Driver Number of setups Weight of raw material Weight of hazardous chemicals used Number of inspections Machine hours An order for 5,000 boxes of medical-testing agent has the following production requirements. 5 setups 10,000 pounds 2,000 pounds 5,000 pound 1,000 20,000 10 inspections 700 machine hours Pool Rate $3,000 per setup $2 per pound $5 per pound $75 per inspection $10 per machine hour

The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. An order for 5.000 boxes of medical-testing agent has the following production requirements. An order for 5,000 boxes of medical testing ogent has the following production requirements PR 5.52 (Algo) Part 1 The controller for Tulsa Medical Supply Company... Required: 1. Compute the total overhead that should be assigned to the medical tosting agent order 2. What is the overheod cost per box of testing agent? 3. Suppose Tulso Medical Supply Company were to use a single predetermined overheod rate based on mochine 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 Intotal b. Per box of testing agent. The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. An order for 5.000 boxes of medical-testing agent has the following production requirements. An order for 5,000 boxes of medical testing ogent has the following production requirements PR 5.52 (Algo) Part 1 The controller for Tulsa Medical Supply Company... Required: 1. Compute the total overhead that should be assigned to the medical tosting agent order 2. What is the overheod cost per box of testing agent? 3. Suppose Tulso Medical Supply Company were to use a single predetermined overheod rate based on mochine 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 Intotal b. Per box of testing agent

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