Problem 1 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 X Prescription Y Prescription Z Annual volume (prescriptions) 60 240 1,200 Annual costs: Direct costs $9,240 $58,800 $38,400 Overhead (indirect costs) Annual charges $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 Total overhead Prescription X Allocated to Prescription Y Allocated to Prescription Z b. Determine the total cost (direct cost + indirect cost) of filling one of each type of prescription if overhead is allocated using CCR. Hing: Complete the following table: Total direct costs Total overhead Total Full cost Volume (prescriptions) Full cost p/prescription Prescription X Prescription Y Prescription Z