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Wolanin Pharmacy, part of a large chain of pharmacies, The controller has gathered the fills a variety of prescriptions for customers. The complexity following information:

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Wolanin Pharmacy, part of a large chain of pharmacies, The controller has gathered the fills a variety of prescriptions for customers. The complexity following information: of prescriptions filled by Wolanin varies widely; pharmacists can spend between five minutes and six hours (Click the icon to view the expected usage on a prescription order. Traditionally, the pharmacy has and.costs.) allocated its overhead based on the number of The clerk for Wolanin has gathered the following prescriptions. The pharmacy chain's controller is exploring information regarding two recent pharmacy orders: whether activity-based costing (ABC) may better allocate (Click the icon to view the pharmacy the pharmacy overhead costs to pharmacy orders. order data.) Read the 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) Data table Data table 1. What is the traditional overhead rate based on the number of prescriptions? 2. How much pharmacy overhead would be allocated to customer order number 1245 if traditional overhead allocation based on the number of prescriptions is used? 3. How much pharmacy overhead would be allocated to customer order number 1246 if traditional overhead allocation based on the number of prescriptions is used? 4. What are the following cost pool allocation rates: a. Pharmacy occupancy costs b. Packaging supplies c. Professional training and insurance costs 5. How much would be allocated to customer order number 1245 if activity-based costing (ABC) is used to allocate the pharmacy overhead costs? 6. How much would be allocated to customer order number 1246 if activity-based costing (ABC) is used to allocate the pharmacy overhead costs? 7. Which allocation method (traditional or activity-based costing) would produce a more accurate product cost? Explain your

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