Question
Gracen Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Gracen varies
Gracen Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Gracen varies widely, pharmacists can spend between five minutes and six hours on a prescription order. Traditionally, the pharmacy has allocated its overhead based on the number of prescriptions. The pharmacy chain's controller is exploring whether activity-based costing (ABC) may better allocate the pharmacy overhead costs to pharmacy orders Data table Data table Cost Pools Pharmacy occupancy costs (utilities, rent, and other costs)... Packaging supplies (bottles, bags, and other packaging)... Professional training and insurance costs Total pharmacy overhead. Technician Hours Number of Prescriptions Pharmacist Hours Customer Order Number 1102 Customer Order Number 1103 0.5 3 20 05 1 25 Total Annual Estimated Cost Cost Driver Total Annual Estimated Cost Driver Activity $ 36.000 Technician hours 90,000 39,100 Number of prescriptions 23,000 125.000 Pharmacist hours 25,000 200,100 Print Done
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