Raynham'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.) i (Click the icon to view additional information.) Required 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.) Budgeted overhead rate Service labour X ( Total indirect costs Total labour ) = Indirect costs allocated to service X-Rays X Budgeted information Raynham's Radiology Centre Budgeted Information For the Year Ending May 30 Additional information RRC operates at capacity. The proposed allocation bases for overhead are as follows: Administration Number of procedures Maintenance (including parts) Capital cost of the equipment (depreciation) X-Rays Ultrasound CT Scan MRI Total Sanitation Utilities Technician labour $ 60,000 $ Depreciation 32,900 106,500 $ 267,000 Materials Administration Maintenance 22,400 16,500 99,000 $ 438,000 24,200 107,000 $ 897,000 30,900 372,500 1,634,900 94,000 23,500 245,000 Sanitation 192,000 134,000 Utilities Totals Number of procedures $ 115,300 $ 390,000 $ 561,200 $ 1,034,900 $ 2,695,900 4,000 4,900 2,800 2,800 Print Done Required Total cleaning minutes Total procedure minutes Print Done 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIs using 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. Print Done -