A hospital pharmacy fills three types of prescriptions . Prescription A requires refrigeration to maintain the drug’s activity. Prescription B has potentially fatal interactions with other drugs and therefor requires careful review by a pharmacist. Prescription C is a basic, common drug that presents little risk to the patient. Prescription A is a brand-name drug still on patent, and therefore the charge for the drug is high relative to its cost. Consider the following data for the hospital pharmacy:

Annual Prescription Volume, Total Direct Costs, and Total Charges

	Prescription (Rx) A	Prescription (Rx) B	Prescription (Rx) C
Annual volume	50	200	1,000
Total direct costs	$7,668	$48,840	$31,300
Total charges	$35,000	$70,000	$50,000

Budgeted overhead costs and activity data

			Cost Driver Consumption per One Rx
Activity	Annual costs	Cost driver	Rx A	Rx B	Rx C
Refrigeration	$8,000	Number of units requiring refrigeration	1	0	0
Materials handling	24,000	Number of feet to drug storage area	50	20	10
Prescription review	90,000	Number of pharmacist minutes	15	60	3
Total costs	122,000

Using activity-based costing (ABC) techniques, determine the allocation rate for each overhead activity and determine the overhead that would be allocated to each type of prescription, A, B, and C.