Question: Problem 5-52 Activity Cost Pools; Cost Drivers; Pool Rates (LO 5-1, 5-2, 5-3, 5-4, 5-5, 5-7) The controller for Tulsa Medical Supply Company has established




Problem 5-52 Activity Cost Pools; Cost Drivers; Pool Rates (LO 5-1, 5-2, 5-3, 5-4, 5-5, 5-7) 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. 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. 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.) 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.) 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.)
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