1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRI using direct technician labor costs as the allocation basis.
2. Calculate the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRI if RRC allocated overhead costs using activity-based costing.
3. Explain how the disaggregation of information could be helpful to RRC's intention to continuously improve its services.
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Table Data table Riddick's Radiology Center Budgeted Information for the Year Ended May 31, 2020 X-rays CT Scan MRI 164,000 $ 113,200 $ 424,960 876,800 24,000 30,900 Technician labor Depreciation Materials Administration Maintenance Sanitation. Utilities Total Number of procedures Minutes to clean after each procedure Minutes for each procedure. $ $ 80,000 $ 42,240 21,800 144,040 $ 2,900 5 5 Ultrasound 111,000 $ 256,000 17,000 384,000 $ 4,400 5 15 3,100 15 25 Total 2,600 35 40 I K 93,700 20,800 272,000 252,300 157,200 612,960 $1,020,900 $ 2,864,200 468,200 1,600,000 Table Data table Riddick's Radiology Center Budgeted Information for the Year Ended May 31, 2020 X-rays CT Scan MRI 164,000 $ 113,200 $ 424,960 876,800 24,000 30,900 Technician labor Depreciation Materials Administration Maintenance Sanitation. Utilities Total Number of procedures Minutes to clean after each procedure Minutes for each procedure. $ $ 80,000 $ 42,240 21,800 144,040 $ 2,900 5 5 Ultrasound 111,000 $ 256,000 17,000 384,000 $ 4,400 5 15 3,100 15 25 Total 2,600 35 40 I K 93,700 20,800 272,000 252,300 157,200 612,960 $1,020,900 $ 2,864,200 468,200 1,600,000