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Werner Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Werner 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.

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 ans

Requirement $2.$ How much pharmacy overhead would be allocated to customer order number $1243$ if traditional

The overhead allocated to customer order number $1243$ if traditional overhead allocation is used is

$$28\mathrm{.}1$

Data table

$\backslash$table$[[$Cost Pools,$\backslash$table$[[$Total Annual$],[$Estimated Cost$]],$Cost Driver,$\backslash$table$[[$Total Annual E$],[$Cost Driver A$]]],[\backslash$table$[[$Pharmacy occupancy costs $($utilities$,$ rent,$],[$and other costs$).......................]],76,000,$nnician hours,$95,0],[,25,000,$ber of prescriptions,$25,00],[$Professional training and insurance costs,$75,000,$rmacist hours,$25,00],[$Total pharmacy overhead,$176,{000}_{?},,]]$

The overhead allocated to customer order number $1244$ if traditional overhead allocation is used is $$14\mathrm{.}08$

Requirement $4.$ What are the cost pool allocation rates? Abbreviations used: est. $=$ estimated, Ins. $=$ insurance, Pharm. $=$ Pharmacy, $PH=$ pharmacist hour, presc. $=$ prescription, $TH=$ technician hour$)$

$\backslash$table$[[,$Total est. activity cost pool $,+$ Total est. activity allocation base $=,$Cost pool$],[$Pharm$.$ occupancy $+||,$allocation rate,$],[,$per $TH,]]$

Data table

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$\backslash$table$[[,\backslash$table$[[$Technician$],[$Hours$]],\backslash$table$[[$Number of$],[$Prescriptions$]],\backslash$table$[[$Pharmacist$],[$Hours$]]],[$Customer Order Number $1243,0\mathrm{.}5,4,3\mathrm{.}0],[$Customer Order Number $1244,0\mathrm{.}5,2,1\mathrm{.}5]]$

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