First identify the formula used to compute the traditional overhead rate, then compute the rate. Total Annual

First identify the formula used to compute the traditional overhead rate, then compute the rate.

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Total Annual Estimated Cost Driver Cost Driver Activity 57,000 Technician hours 95,000 30,000 Number of prescriptions.. 25,000 234,000 Pharmacist hours 26,000 321,000 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 Total Annual Estimated Cost Data table Technician Hours Number of Prescriptions Pharmacist Hours Customer Order Number 1240 0.5 4 2.0 Customer Order Number 1241 0.5 2 1.5 - X Wolanin Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Wolanin 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 Wolaninhas 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 Total Annual Estimated Cost Driver Cost Driver Activity 57,000 Technician hours 95,000 30,000 Number of prescriptions.. 25,000 234,000 Pharmacist hours 26,000 321,000 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 Total Annual Estimated Cost Data table Technician Hours Number of Prescriptions Pharmacist Hours Customer Order Number 1240 0.5 4 2.0 Customer Order Number 1241 0.5 2 1.5 - X Wolanin Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Wolanin 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 Wolaninhas 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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