Budgeted Information For the Year Ending May 30, 2019 X-Rays Ultrasound CT Scan MRI Total Technician labour $ 81,440 $105.000 S 00.000 $ 105,000 $ 388,040 Depreciation 32,240 268,000 430,000 897,500 1.636,740 Materials 22.080 10.500 24,000 31.250 93,830 Administration 20.610 Maintenance 247,320 Sanitation 106,180 IN Utilities 134.250 Totals $115.760 $300, 100 $550.000 $1.033.750 $2.007.070 Number of 3,840 4,400 3.000 2.500 procedures Minutes to 5 5 15 35 clean after each procedure Minutes for 15 20 45 each procedure 203.pdf Problem 3 5-36 DEPARTMENT AND ACTIVITY COST RATES, SERVICE SECTOR. Radhika's Radiology Centre (RRC) performs X-rays, ultrasounds, CT scans, and MRIS. RRC has developed a reputation as a top radiology centre in the area. RRC has achieved this status because it constantly re-examines its processes and procedures. RRC has been using a single, facility-wide overhead allocation rate. The VP of Finance believes that RRC can make better process improvements if it uses more disaggregated cost information. She says, "We have state-of-the-art medical imaging technology. Can't we have state-of-the-art accounting technology?" RRC operates at capacity. The proposed allocation bases for overhead are as follows: Administration Number of procedures Maintenance (including parts) Capital cost of equipment (depreciation) Sanitation Total cleaning minutes Utilities Total procedure minutes Required 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIS using the direct technician labour as the cost allocation base. 2. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIS if RRC allocated overhead costs using ABC. 3. Explain how the disaggregation of information could be helpful to RRC's intention to continuously improve its services