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Wilke Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity af prescriptions filled by Wilke varies widely;
Wilke Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity af prescriptions filled by Wilke 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 phamacy chain's controller is exploring whether activity-based costing (ABC) may better allocate the pharmacy overhead costs to pharmacy orders. The controller has gathered the following information: Click the icon to view the expected usage and costs.) The clerk for Wilke has gathered the following information regarding two recent pharmacy orders: (Click the icon to view the pharmacy order data.) Read the requirements. nearest cent.) 14.20 The overhead allocated to customer order number 1246 if traditional overhead allocation is used is S Requirement 4. What are the cost pool allocation rates? Calculate the cost pool allocation rate for each activity. First determine the formula to compute the allocation rate in an activity-based costing system, then compute the rate for each cost pool. (Round your answors to the nearest cent. Abbreviations used: est. estimated, Ins, insurance, Pharm. Pharmacy, PH pharrdacist hour, presc. prescription, TH technician hour) Cost pool Total est. activity allocation base Total est, activity cost pool allocation rate per TH 34,000 Pharm. occupancy Enter any number in the edit fields and then click Check Answer Total Annual Estimated Cost Total Annual Driver Activity Cost Pools Estimated Cost Cost Driver 85,000 Pharmacy occupancy costs (utilities, rent, and Technician.hours. other.casts). $ 34,000 24,000 Number.of.prescriptions Packaging supplies (bottles, bags, and other 26,400 packaging) 110,000 22,000 Pharmacist hours. Professional fraining and insurance.costs $ 170,400 Total pharmacy.overhead The clerk for Wilke has gathered the followi exploring whether activitv-based costina (ABC) cy o X Data Table aditi Customer Order Technician Pharmacist Number of Number Hours Prescriptions Hours 1245 0.5 4 1.0 dete 1246 0.5 2 2.5 Print Done
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