Data table Cost Pools Pharmacy occupancy costs (utilities, rent and other costs) Packaging supplies (bottles, bags,...
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Data table Cost Pools Pharmacy occupancy costs (utilities, rent and other costs) Packaging supplies (bottles, bags, and other packaging) Professional training and insurance costs Total pharmacy overhead Data table Total Annual Estimated Cost $ Cost Driver Total Annual Estimated Cost Driver Activity 76.000 Technician hours 95,000 32.000 Number of prescriptions 20.000 92.000 pharmacist hours...... 23.000 200,000 Technician Hours Number of Prescriptions Pharmacist Hours Customer Order Number 1247 0.5 2.0 Customer Order Number 1248 0.5 2 2.5 Wamsley Pharmacy, part of a large chain of pharmacies. fills a variety of prescriptions for customers. The complexity of prescriptions filled by Wamsley 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. The controller has gathered the following information: (Click the icon to view the expected usage and costs.) The clerk for Wamsley has gathered the following information regarding two recent pharmacy orders: (Click the icon to view the pharmacy order data) 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 Data table Cost Pools Pharmacy occupancy costs (utilities, rent and other costs) Packaging supplies (bottles, bags, and other packaging) Professional training and insurance costs Total pharmacy overhead Data table Total Annual Estimated Cost $ Cost Driver Total Annual Estimated Cost Driver Activity 76.000 Technician hours 95,000 32.000 Number of prescriptions 20.000 92.000 pharmacist hours...... 23.000 200,000 Technician Hours Number of Prescriptions Pharmacist Hours Customer Order Number 1247 0.5 2.0 Customer Order Number 1248 0.5 2 2.5 Wamsley Pharmacy, part of a large chain of pharmacies. fills a variety of prescriptions for customers. The complexity of prescriptions filled by Wamsley 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. The controller has gathered the following information: (Click the icon to view the expected usage and costs.) The clerk for Wamsley has gathered the following information regarding two recent pharmacy orders: (Click the icon to view the pharmacy order data) 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
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