- Data table Data table Rowley's Radiology Center Budgeted Information for the year Ended May 31, 2017 RRC operates at capacity. The proposed allocation bases for overhead are: Administration Number of procedures Maintenance (including parts) Capital cost of the equipment (use Depreciation) Sanitation Total cleaning minutes Utilities Total procedure minutes X-rays Ultrasound CT scan MRI Total Technician labor $ 60,000 $ 104,500 $ 178,500 $ 107,000 $ 450,000 1,400,000 Depreciation 206,400 249,000 399,600 545,000 Materials 22,700 16,900 23,600 30,900 94,100 Administration 19,800 Print Done Maintenance Sanitation 280,000 281,600 125,100 Utilities $ 289,100 $ 370,400 $ 601,700 $ 682,900 $ 2,650,600 2,800 4,600 3,200 2,600 Total Number of procedures Minutes to clean after each procedure Minutes for each procedure 5 5 15 35 10 15 20 45 Print Done Requirements 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. Print Done Rowley's Radiology Center (RRC) performs X-rays, ultrasounds, computer tomography (CT) scans, and magnetic resonance imaging (MRI). RRC has developed a reputation as a top radiology center in the state. RRC has achieved this status because it constantly reexamines its processes and procedures. RRC has been using a single, facility-wide overhead allocation rate. The vice president 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?" B (Click the icon to view the budgeted information.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRI using direct technician labor costs as the allocation basis. Start by calculating the budgeted overhead rate for total indirect costs based on total labor. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to two decimal places, X.XX. Abbreviations used: DC = Direct cost, DL = Direct labor, $ = dollar.) Total overhead costs . Total technician labor cost = Budgeted overhead rate 157 706,500 . 450,000 = per DL $