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% Rathbum's Radiology Center (RRC) performs X-rays, ultrasounds, computer tomography (CT) scans, and magnetic resonance imaging (MRU) RRC has developed a reputation as a
% Rathbum's Radiology Center (RRC) performs X-rays, ultrasounds, computer tomography (CT) scans, and magnetic resonance imaging (MRU) 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 beleves that RRC can make better process improvements if es 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?" Click the icon to view the budgeted information) Click the icon to view additional information) Read the curament 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 Minutes for each procedure Print Data table Rathburn's Radiology Center Budgeted Information for the Year Ended May 31, 2020 Technician labor Depreciation Materials Administration Maintenance Sanitation Utilities Total X X-rays Ultrasound CT Scan MRI Total $ 73,500 $ 113,100 $ 160,720 $ 101,000 $ 448,320 6,300 276,500 466,200 851,000 1,600,000 22,500 16,800 23,700 31,300 94,300 22,560 240,000 263,670 146,250 102,300 $ 406,400 $ 650,620 $ 983,300 $ 2,815,100 5,280 3,780 2,760 2,280 5 5 15 30. 10 15 25 50 Number of procedures Minutes to clean after each procedure Minutes for each procedure Print Done Data table RRC operates at capacity. The proposed allocation bases for overhead are: Administration Maintenance (including parts) Sanitation Utilities Number of procedures Capital cost of the equipment (use Depreciation) Total cleaning minutes Total procedure minutes Print Done
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