RCG currently uses a single, facility-wide indirect cost allocation rate based on technician labor hours. The VP of Finance believes that RCG can make 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 cost accounting too?" The table below summarizes the relevant budgeted information from the 2- Quarter, 2021. Radiology Center of Gwinnett Bodgeted information for the 2 Quarter 2020 Radiographie Ultrasound Standard Selling rate per procedure Total CT $250 5525 MRI 5650 5250 Quarterly direct cost budget Consumable materials Technician labor $22.000 $16,500 24,000 31.250 593,830 561440 SIOS.600 596.000 SIOS.000 $365,040 Quarterly indirect cost budget Depreciation & Maintenance Administration Facility Sterilisation Utilities Total indirect cost budget $984,060 595.610 SIMINO 5134,850 51.410,00 19,200 Quarterly operational data Minutes for procedures Technician labor hours (TLH) Post-procedure minutes Number of procedures 2.04 22,000 45,000 87.500 173.700 2.45% 3,200 3,000 10,706 66,000 60,000 112.500 237,700 4,400 3,000 2.500 13,740 19.200 3.840 The proposed activity-based cost (ABC) assignment bases for indirect costs are: Depreciation and Maintenance - minutes for procedures Administration - TLH Facility Sterilization - post-procedure minutes Utilities - number of procedures Required: (be sure to document all your work) 1. Determine the gross profit per radiographic, ultrasound, CT scan, and MRI procedure based on the facility-wide indirect allocation rate that RCG is currently using. 2. Determine the gross profit per radiographic, ultrasound, CT scan, and MRI procedure assuming RCG uses activity- based cost rates as proposed by the VP of Finance. 3. Briefly discuss the results HINT: Since the cost of materials and labor is provided at the lines of service level, you will probably find it helpful to allocate costs to the lines of service first, then compute the cost per procedure. See the Maglie Company Demo video series as a reference