PROBLEM 3. (25 points) Spock Pharmacy is a small pharmacy that fills a variety of prescriptions for customers. The complexity of prescriptions filled by Spock varies widely: pharmacists can spend between five minutes and six hours on a customer order. The pharmacy currently allocates its overhead based on the number of prescriptions. Management is exploring whether activity-based costing (ABC) may better allocate the pharmacy overhead costs to customer orders, and obtained the following information: Cost Pool Pharmacy operations Packaging supplies Order fulfillment Customer service Estimated Cost $ 36,000 $ 39,100 $125,000 $ 57,500 Cost Driver Technician hours Number of prescriptions Pharmacist hours Number of customer orders Activity Level 90,000 23,000 25,000 5,750 One particular customer placed an order for 3 prescriptions. Fulfilling this order took 0.5 technician hours and 2 pharmacist hours. a) What would the cost of the order be under the pharmacy's current costing method? b) What would the cost of the order be if the pharmacy adopted ABC? c) Management is considering the use of activity-based pricing. How can this help improve profitability? Also, provide one disadvantage of the use of activity-based pricing in this context