Problem 5-52 Activity Cost Pools; Cost Drivers; Pool Rates ( LO 51,52,53,54, 55,57) 3. Predetermined overhead rate: $31.25 per machine his. The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. An order for 1,000 boxes of medical-testing agent has the following production requirements. Machine setups 5 setuos Raw material 10,000 pounds Hazardous materials 2,000 pounds Inspections 10 inspections 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. 5. Explain why these two product-costing systems result in such widely differing costs. Which system do you recommend? Why? 6. Build a spreadsheet: Construct an Excel spreadsheet to solve requirements 1,2,3, and 4 above. Show how the solution will change if the following data change. The overhead associated with machine setups is $375,000, and there are 500 inspections budgeted