Rashaad'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 reexamines 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?" The following budgeted information is available. (Click the icon to view the budgeted information.) (Click the icon to view additional information.) Rashaad's Radiology Centre Budgeted Information For the Year Ending May 30 Number of procedures Minutes to clean after each procedure 4,1001054,8005203,30015252,6004040 Minutes for each procedure Additional information Requirement 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIs using direct technician labour costs as the allocation base. Determine the formula to calculate the overhead costs allocated to each service. Next, calculate the indirect costs allocated to each service. (Do not round until the final amount; then round the costs allocated to the nearest whole number.) Now calculate the total budgeted costs for each service using direct technician labour costs as the allocation basis. Then, calculate the budgeted cost per service. (Round the budgeted cost per service to the nearest cent.) Requirement 2. Calculate the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRIs if RRC allocated overhead costs us Begin by determining the formula you will use to allocate administration costs. Calculate the budgeted cost for each service using activity-based costing. Use the formulas you determined above in your calculations. (Hold all decimals in interim calculations. Round final answers to the nearest whole dollar.) Requirement 3. Explain how the disaggregation of information could be helpful to RRC's intention to continuously improve its services. Using the disaggregated activity-based costing data, managers can see that cost substantially more and substantially less than the traditional system indicated. In particular, a(n) activity generates a lot of maintenance activity and sanitation activity. Managers should examine the use of these two activities to search for ways to the activity consumption and ultimately its