Accounting · Overhead Absorption Rates
A pharmacy uses a pre-determined overhead absorption rate of $7 per prescription, based on the budgeted number of prescriptions. Given total overheads are $97,000 for 13,000 prescriptions and $109,000 for 16,000 prescriptions, and the fixed overheads during the period are $45,000, what was the budgeted level of activity (number of prescriptions)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 115,000 prescriptions✓
- 212,143 prescriptions
- 315,500 prescriptions
- 49,429 prescriptions
Correct answer
15,000 prescriptions
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