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?" (Click the icon to view the budgeted Information.) (Click the icon to view additional information) Read the requirements, 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 Now calculate the total budgeted costs for each service and the budgeted cost per each service using direct technician 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 service Requirement 2. Calculate the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRI I RRC allocated overhead costs using activity-based costing, Begin by calculating the cost driver rate per activity. (Round the answers to five decimal places, "X.XXXXX".) Cost driver rate Administration Maintenance Sanitation Utility Now calculate the budgeted cost for each service and the budgeted cost per service using activity-based costing. (Round costs to the nearest whole dollar. Then round the cost per service to the nearest cent.) Ultrasound CT scan MRI X-rays Technician labor Depreciation Materials Administration Maintenance Sanitation Utilities Total budgeted costs Budgeted cost per service Requirement 3. Explain how the disaggregation of information could be helpful to RRC's intention to continuously improve its services. Using the disaggregated activity-based costing data, O A. Managers can see that the X-ray actually costs substantially more than the MRI, ultrasounds, and CT scans. This is why the number of procedures for this method of activity is the lowest for each group of activity. O B. Managers can see that the MRI actually costs substantially more and x-rays, ultrasounds, and CT scans substantially less than the traditional system indicated. Managers should examine the use of maintenance and sanitation activities to search for ways to reduce the activity costs. O c. Managers can see that the CT scans are extremely more costly than the x-rays, ultrasounds, or MRI's. This causes managers to focus ways of reducing the number of procedures so costs can stay at a minimum. OD. Managers can see that the ultrasounds actually cost the same as the other group activities. Managers should feel indifferent in trying to obtain ways to continuously improve in this area. Data Table Reston's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Total Technician labor $ 117,450 $ 154,000 $ 169,000 $ 156,000 $ 596,450 Depreciation 106,800 201,000 300,200 692,000 1,300,000 Materials 22,300 16,800 24,400 31,300 94,800 Administration 18,620 Maintenance 260,000 Sanitation 271,425 106,050 Utilities $ 246,550 $ 371,800 $ 493,600 $ 879,300 $ 2,647,345 Total 2,555 4,760 3,290 2,695 Number of procedures Minutes to clean after each procedure 10 10 20 40 Minutes for each procedure 5 20 15 40 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 Utilities Total procedure minutes