Reston'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?" editional Reston'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 Depreciation 42.240 256,000 424,960 876,800 1,600,000 Materials 22,300 16,500 23,900 31,000 93,700 Administration 20,800 Maintenance 272,000 Sanitation 252,300 157,200 Utilities $ 144,540 $ 383,500 $ 612,860 $ 1,021,000 $ 2,864,200 Total Number of procedures 2,900 4,400 3,100 2,600 Minutes to clean after each procedure 5 5 15 35 Minutes for each procedure 15 25 40 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 Utilities Total procedure minutes 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