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? E: (Click the icon to view the budgeted information.) (Click the icon to view additional information.) Read the requirements. i Data Table naging ad alloc Can't i Data Table Reston's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Technician labor $ 60,000 $ 104,500 $ 178,500 $ 107,000 $ Depreciation 206,400 249,000 399,600 545,000 Materials 21,800 16,900 24.400 30,700 Administration abor cos Total 450,000 1,400,000 93,800 19,800 280,000 281,600 125,100 2.650,300 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 the app Maintenance Sanitation Print Print Done Done Utilities osts as the allocation Dasis. (Round the budgeted cost per service to the nearest cent.) 288,200 $ 370,400 $ 602.500 $ 682.700 $ Number of procedures 2,800 4.600 3,200 2.600 Print Done 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 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 if RRC allocated overhead costs using activity-based costing. Requirement 2. Calculate the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRI if 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.) X-rays Ultrasound CT scan MRI 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 X-rays Ultrasound CT scan MRI Technician labor Depreciation Materials Administration Maintenance Sanitation Utilities Total budgeted costs 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. OB. Managers can see that the CT scans are extremely more costly than the x-rays, ultrasounds, or MRI's. This causes managers to focus on ways of reducing the number of procedures so costs can stay at a minimum. OC. Managers can see that the ultrasounds actually cost the same as the other group of activities. Managers should feel indifferent in trying to obtain ways to continuously improve in this area. OD. 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. 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? E: (Click the icon to view the budgeted information.) (Click the icon to view additional information.) Read the requirements. i Data Table naging ad alloc Can't i Data Table Reston's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Technician labor $ 60,000 $ 104,500 $ 178,500 $ 107,000 $ Depreciation 206,400 249,000 399,600 545,000 Materials 21,800 16,900 24.400 30,700 Administration abor cos Total 450,000 1,400,000 93,800 19,800 280,000 281,600 125,100 2.650,300 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 the app Maintenance Sanitation Print Print Done Done Utilities osts as the allocation Dasis. (Round the budgeted cost per service to the nearest cent.) 288,200 $ 370,400 $ 602.500 $ 682.700 $ Number of procedures 2,800 4.600 3,200 2.600 Print Done 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 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 if RRC allocated overhead costs using activity-based costing. Requirement 2. Calculate the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRI if 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.) X-rays Ultrasound CT scan MRI 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 X-rays Ultrasound CT scan MRI Technician labor Depreciation Materials Administration Maintenance Sanitation Utilities Total budgeted costs 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. OB. Managers can see that the CT scans are extremely more costly than the x-rays, ultrasounds, or MRI's. This causes managers to focus on ways of reducing the number of procedures so costs can stay at a minimum. OC. Managers can see that the ultrasounds actually cost the same as the other group of activities. Managers should feel indifferent in trying to obtain ways to continuously improve in this area. OD. 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