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Rathburn'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
Rathburn'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?" 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.) = Budgeted overhead rate Data table Rathburn's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Total Technician labor $ 80,000 $ 111,000 $ 164,000 $ 113,200 $ 468,200 424,960 1,600,000 Depreciation Materials 42,240 22,200 256,000 16,800 876,800 30,700 24,400 94,100 Administration 20,800 Maintenance Sanitation 272,000 252,300 157,200 Utilities Help me solve this Etext pages Calcula $ 144,440 $ Total 383,800 $ 613,360 $ 1,020,700 $ 2,864,600 2,900 4,400 3,100 2,600 Number of procedures Minutes to clean after each procedure Minutes for each procedure 5 5 15 35 5 15 25 40
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