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A pharmacy fills three types of presciptions. Prescription 1) requires refrigeration. Presciption 2) requires careful review and handling by pharmacist. Presciption 3) is basic Annual Prescription Volume, Total Direct Costs, and Total Charges RX-A RX-B Rx-C Annual Volume 100 400 2000 Total Direct Costs $10,000 $50,000 $30,000 Total Charges $40,000 $100,000 $60,000 Budgeted Overhead Costs and Activity Data Annual Cost Driver Consumption/ one Rx Costs Cost Driver RX-A Rx-B Rx-C $20,000 # of refrig units 2 0 $70,000 # of feet to storage 100 $90,000 # of Pharmacist min 30 120 6 $180,000 Refrigeration Materials Handling Presciption Review 0 40 20 a) Using ABC, determine the allocation rate for each OH activity Determine the overhead that would be allocated to each type or Rx. Determine the total cost of each type of prescription