31. stan's good drugstore is an all-service drug store and fills prescriptions for nursing homes and individual customers. Stan's uses an activity-based costing system. Data concerning overhead cost and activity pools is as follows: Activity Cost Pool Prescriptions Deliveries Other Total Estimated Wages $68,000 $44,000 $8.000 $120.000 Estimated "Other" $38,000 $10,000 $12.000 $60,000 During the month, Stan's fills 30,000 prescriptions and makes 15,000 deliveries. Using activity-based costing what is the approximate cost per prescription?

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.