Worchester Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for stion list customers. The complexity of prescriptions filled by Worchester varies widely; pharmacists can X spend between five minutes and six hours on a prescription order. Traditionally, the pharmacy has Requirements allocated its overhead based on the number of prescriptions. The pharmacy chain's controller is Question 1 exploring whether activity-based costing (ABC) may better allocate the pharmacy overhead costs to pharmacy orders. What is the traditional overhead rate based on the number of prescriptions? N X How much pharmacy overhead would be allocated to customer order Data table number 1242 if traditional overhead allocation based on the number of prescriptions is used? How much pharmacy overhead would be allocated to customer order Total Annual Total Annual Estimated number 1243 if traditional overhead allocation based on the number of Cost Pools Estimated Cost Cost Driver Cost Driver Activity prescriptions is used? + Pharmacy occupancy costs (utilities, rent, What are the following cost pool allocation rates: and other costs) 69 102,000 Technician hours ... .. . . 85.000 a. Pharmacy occupancy costs Packaging supplies (bottles, bags, and other b. Packaging supplies packaging) c. Professional training and insurance costs . . . . . 34,000 Number of prescriptions .. 20,000 How much would be allocated to customer order number 1242 Professional training and insurance costs 56,000 Pharmacist hours . . . . . . 28,000 if activity-based costing (ABC) is used to allocate the pharmacy 192,000 overhead costs? Total pharmacy overhead How much would be allocated to customer order number 1243 if activity-based costing (ABC) is used to allocate the pharmacy X overhead costs? Data table N Which allocation method (traditional or activity-based costing) would produce a more accurate product cost? Explain your answer. Technician Number of Pharmacist Hours Prescriptions Hours Customer Order Number 1242 Print Done Customer Order Number 1243 Jestion 8