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Keene Hospital Pharmacy fills three types of prescriptions. Prescription X requires refrigeration to maintain the drug's efficacy. Prescription Y has potentially fatal interactions with other

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Keene Hospital Pharmacy fills three types of prescriptions. Prescription X requires refrigeration to maintain the drug's efficacy. Prescription Y has potentially fatal interactions with other drugs and therefore requires careful review by a pharmacist. Prescription Z is a basic, common drug that presents little risk to the patient. Prescription X 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: Prescription Prescription Y Prescription z 1,200 60 240 Annual volume (prescriptions) Annual costs: Direct costs Overhead indirect costs) Annual charges $9,240 $58,800 $38,400 $42,504 $88,200 $61,440 Total overhead (indirect costs) for the pharmacy=$153 716 a. Using the cost-to-charges ratio (CCR) method, determine the overhead that would be allocated to each type of prescription, X, Y, and Z. Hint: Complete the following table: Allocated to Prescription X Allocated to Prescription Y Allocated to Prescription 2 Total overhead

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