Raynharn's 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.

3. Raynham's Radiology Center (RRC) performs X-raya, 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 to processes and procedures. RRC has been using a single, facility-wide overhead allocation rate. The vice prealdent of finance belleves that RRC can make better process Improvements if it uses more disaggregated cost Information. She saya, "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.) 2(Click the Icon to view additional Information.) Read the requirements Requirement 1. Calculate the budgeted cost per service for X-rays, ultrasounde, 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, XXX. Abbreviations used: DC Direct cost, DL - Direct labor, $ dollar.) (2) Budgeted overhead rate (3) Now calculate the total budgeted costs for each service and the budgeted cost per each service using direct technielan labor costs as the allocation basis. (Round the budgeted cost per service to the nearest cent.) X-rays Ultrasound CT scan MRI Technician labor Depreciation Materials Indirect costs Total budgeted costs Budgeted cost per serviee Requirement 2. Calculate the budgeted cost per service of X-rays. ultrasounds. CT scans and MRI ERRO allocated ovemead eosts using activity-based costing Begin by calculating the cost dover rate per activity. (Round the answers to live decmal places. "X.XXXXX".) (5) Cast dnverrate Administration (6) Mauritania 0 Sanitation Now calculate the budgeted cost tor each service and the budgeted cost per service using activity-based costing. Round costs to the neareste collar. Then found the cost per service to the nearest cent Gen Tehnician labe Dalian Hotels ministration ORG Sanitation U Total budgeted costs Budgeld cost pravice Requirement 3. Explain how the disaggregation of information could be helpful to RRC's intention to continuously improve VS Using the disaggregated activity based cosing data, A Mangges on see the GT seans are extremely more costly than the rays, ultrasounds or MRIS This causes managers to beus on ways of reducing the NunDroi procedures 90 costs ean stay at a minimum. B. Managers can see that the rounds actually cost the same as the one group of Mes Manages should lead dileen in lyng to obtain ways to continuously in this ea C. Managers can see the he Xhay actually costs substantay more than the MRI, uitsounds, And CT Scans. This is why the number of procedures for this method of Activity is the lowest for each group olactivity. D. Managers can see the MRI actually costantially more and x-rays, rounds, and CT Sans substantially less than the traditional system indicated Managers should one the use of mantenance and sanitation adivities to search for ways to reduce the activity COSES, Data Table Raynham's Radiology Center Budgeted Information for the Year Ended May 31, 2020 GT Scan MRI 52 000 3 10000 155.000 000 clan labor Depreciation 2 Walonas 4 100 emnation Maintenante Suni 100 Utilities 603 566 $10110 letal Neue Material procedure Ruter Des 2. Data Table 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 Ultes Total procedure minutes 3. 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 I 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. Total technician labor cost Total indirect costs Total indirect material costs Total overhead costs (2) Total technician labor cost Total indirect costs Total indirect material costs Total overhead costs per batch per DC S per DL $ 15 Cost Number of procedures Total quantity of cost driver Cost Number of procedures Total quantity of cost driver per procedure minute per S of depreciation per cleaning minute per procedure per procedure minute / bers of depreciation per cleaning minute per procedure 18 O par procedure minute per 5 of depreciation O per claaning minute O per procedure O per procedure minute O per S of depreciation O par cleaning minute O per procedure