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having trouble with 5, 6, 7 Wolanin Pharmacy, part of a iarge chain of pharmucies, fis a variety of prescriptions for castomers. The complexity of
having trouble with 5, 6, 7
Wolanin Pharmacy, part of a iarge chain of pharmucies, fis a variety of prescriptions for castomers. The complexity of proscriptions flled by Wolarin varies widely, pharmaciats can spend between five minutes and six hours on a prescription order. Tradifonally. the pharmacy has allocated its overhead based on the number of prescilotions. The phavinacy chahis controller is exploring whether activity -based cossing (ABC) may better allocate the pharmacy overhead costs to pharmacy ordess The cantucloe has gathered the following indermation (Click the icon to vew the expected usage and castas) The clerk for Wolanin has gathered the following information regarding two rocent pharmacy oeders [Click the icon to viow the pharnacy ceder data.] Read the movements Requirement 1. What is the tadtional overhead rate based on the nunber of proscriptoas? Requirement 2. How much pharmacy overhead would bo allocated to customwr order namber 1243 if tradtional overtead allocabion based en the number of prescriptions is used? fRound your answer to the peatest cent) The overhead allocated to customer aiser number 1243 if tradsional overthead allocason is used s answers to the neacest cent) The overthead allocated to customer onder pumber 1248 if tradvional overheas alocalon is ised is Requinement 4. What are the cost pool alocation rites? 5. How much would be allocated to customer order number 1243 if activity-based costing (ABC) is used to allocate the pharmacy overhead costs? 6. How much would be allocated to customer order number 1244 if activity-based costing ( ABC ) is used to allocate the pharmacy overhead costs? 7. Which allocation method (traditional or activity-based costing) would produce a more accurate product cost? Explain your answer. Data table Step by Step Solution
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