pter 4 Question 7, E4-25A (similar to) Part 1 of 11 Westford Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Westford 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. HW Score: 42.08%, 4.21 of 10 points O Points: 0 of 1 The controller has gathered the following information: (Click the icon to view the expected usage and costs.) Save The clerk for Westford has gathered the following information regarding two recent pharmacy orders: (Click the icon to view the pharmacy order data.) 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 rate, then compute the rate. (Round your answer to the nearest cent. Abbreviations used: est estimated) Traditional overhead rate 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 ie clerk for Westford has gathered the following info pharmacy orders: (Click the icon to view the pharmacy order data) - Cost Pools Pharmacy occupancy costs (utilities, rent, and other costs).. Total Annual Estimated Cost Cost Driver Total Annual Estimated Cost Driver Activity used: est. 54,000 Technician hours. 90,000 Packaging supplies (bottles, bags, and other packaging)... 24,000 Number of prescriptions.. 24,000 Professional training and insurance costs. $ 120,000 Pharmacist hours 20,000 $ 198,000 Total pharmacy overhead Print Done exploring whether activity-based costing (ABC) may better allocate the pharmacy overhead costs macy chain's controller is to pharmacy orders. 10 The clerk for Westford has gathered the follow pharmacy orders: (Click the icon to view the pharmacy orden Data Table sad the requirements. - X Data table Requirement 1. What First identify the formula st cent. Abbreviations use- Technician Hours Number of Prescriptions Pharmacist Hours Customer Order Number 1243 Customer Order Number 1244 0.5 4 3.0 0.5 2 2.5 Print Done Westford Pharmacy, part of a lane chain of ob customers. The comple spend between five mir allocated its overhead t exploring whether activ to pharmacy orders Requirements 1. 2. 3. Requirement 1. What i First identify the formula 4. scriptions for The controllar has gathered the following information: - X o view the expected usage and costs.) rd has gathered the following information o view the pharmacy order data.) What is the traditional overhead rate based on the number of prescriptions? How much pharmacy overhead would be allocated to customer order number 1243 if traditional overhead allocation based on the number of prescriptions is used? How much pharmacy overhead would be allocated to customer order number 1244 if traditional overhead allocation based on the number of prescriptions is used? What are the following cost pool allocation rates: a. Pharmacy occupancy costs b. Packaging supplies nts. st cent. Abbreviations used: est. estima c. Professional training and insurance costs 5. 6. 7. How much would be allocated to customer order number 1243 if activity-based costing (ABC) is used to allocate the pharmacy overhead costs? How much would be allocated to customer order number 1244 if activity-based costing (ABC) is used to allocate the pharmacy overhead costs? Which allocation method (traditional or activity-based costing) would produce a more accurate product cost? Explain your answer. Print Done