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E4-23A (similar to) Question Help Westford Pharmacy, part of a large chain of pharmacies, fills a variety of The controller has gathered the following information prescriptions for customers. The complexity of prescriptions filled by Westford (Click the icon to view the expected usage and costs.) 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 clerk for Westford has gathered the following information regarding two recent the number of prescriptions. The pharmacy chain's controller is exploring whether pharmacy orders activity based costing (ABC) may better allocate the pharmacy overhead costs to (Click the icon to view the pharmacy order data) pharmacy orders Read the requirements Requirement 1. What is the traditional overhead rate based on the number of prescriptions? First identify the formula used to compute the traditional overhead rato, then compute the rate. (Round your answer to the nearest cent. Abbreviations used est = estimatod) Traditional overhead rate Actual total pharmacy overhead Actual total change orders Est. number of prescriptions Est. total pharmacy overhead Est total technician hours Est total pharmacist hours Est training costs Choose from any drop-down list and then click Check Answer 10 parts remaining Clear All Check Answer A (similar to) Question He Pharmacy, part of a large chain of pharmacies, fills a variety of ions for customers. The complexity of prescriptions filled by Westford dely, pharmacists can spend between five minutes and six hours on a ion order. Traditionally, the pharmacy has allocated its overhead based on ber of prescriptions. The pharmacy chain's controller is exploring whether based costino (ARC, mau better allocate the pharmacy wchoad.coute to * Data Table The controller has gathered the following information: Click the icon to view the expected usage and costs.) The clerk for Westford has gathered the following information regarding tw pharmacy orders (Click the icon to view the pharmacy order data) me ntify used: est Total Annual d) Total Annual Estimated Cost Cost Driver Estimated Cost Driver Activity 60,000 Technician hours $ 48,000 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 Number of prescriptions 20,000 $ $ 30,000 108,000 Pharmacist hours 27,000 $ 186,000 Print Done from any drop-down list and then click Check Answer arts emaining Clear All Check Answer ours on a Traditionally, the pharmacy has allocated its overhead based on mcriptions. The pharmacy chain's controller is exploring whether ng (ABC) may better allocate the pharmacy overhead costs to The clerk for Westford has gathered the following information regarding pharmacy orders (Click the icon to view the pharmacy order data.) Read the requirements. - That is the traditional Data Table mula used to comput st cent. Abbreviations used: Customer Order Technician Number of Pharmacist Number Hours Prescriptions Hours 1240 0.5 3 3.0 1241 0.5 1 2.5 Print Done drop-down list and then click Check Answer. Clear All Check Answer tof a large chain of nharmacies fills a variety of The controller has gathered the following information: ers. The com and costs.) sts can spend * Requirements tionally, the pH ving information regarding to ons The pha \BC) may bet data.) 1. What is the traditional overhead rate based on the number of prescriptions? 2. How much pharmacy overhead would be allocated to customer order number 1240 if traditional overhead allocation based on the number of s the tradition prescriptions is used? I used to com 3. How much pharmacy overhead would be allocated to customer order ent. Abbreviations used. est number 1241 if traditional overhead allocation based on the number of prescriptions is used? 4. What are the following cost pool allocation rates: a. Pharmacy occupancy costs b. Packaging supplies c. Professional training and insurance costs 5. How much would be allocated to customer order number 1240 if activity based costing (ABC) is used to allocate the pharmacy overhead costs? 6. How much would be allocated to customer order number 1241 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 Print Done down list and Clear All Check