Riddick'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 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.XXXX".) Cost Total quanlity of cost driver Cost driver rate Administration $ 22,560 + 14,100 = S 1.60 per procedure Maintenance 240,000 - 1,600,000 = S 0.15 per $ of depreciation Sanitation 263,670 - 155,100 = S 1.70 per cleaning minute Utility 146,250 + 292,500 = $ $ 0.50 per procedure minute 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 S Technician labor Depreciation 73,500 6,300 22,600 8.448 Materials Administration Maintenance Sanitation 945 Utilities Total budgeted costs Enter any number in the edit fields and then click Check Answer. ? 4 parts 4 Clear All remaining Check Answer Riddick'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, S = dollar) Total indirect costs 672,480 Total technician labor cost 448,320 = Budgeted overhead rate = $ 1.50 per DL $ S $ 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.) MRI 101.000 S Technician labor Depreciation Materials X-rays Ultrasound 73.500 $ 113,100 S 6,300 276,500 22,800 16,400 110.250 169,650 CT scan 160,720 $ 466,200 B51.000 30.900 23,900 241,080 Indirect costs 151,500 S 212,850 $ 575,650 $ 891,900 $ 1,134,400 Total budgeted costs S 40.27 $ 152.29 $ 323.15$ 497.54 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. Begin by calculating the cost driver rate per activity. (Round the answers to five decimal places, "X.XXXXX".) Cost Total quantity of cost driver 14 100 - Cost driver rate 1 Annar nrraruna Antration 29 KAN Enter any number in the edit fields and then click Check Answer. ? 4 parts 4 remaining Clear All Check Answer Riddick'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 overticad allocation rate. The vice president of finance believes that RRC can make better process improverrients 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?" i Data Table Real Data Table Reg usin Begi Total 448,320 Adm 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 1,600,000 Riddick's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Technician labor $ 73,500 $ 113,100 $ 160.720 $ 101,000 S Depreciation 6.300 276.500 466,200 851,000 Materials 22.600 16.400 23,900 30,900 Administration Maintenance Sanitation Mair San 93,800 22,560 Utili 240,000 263,670 Print Done Now nea 146,250 Utilities $ 102.400 $ 406.000 $ 650,820 $ 982,900 S 2,814,600 Tech A Requirements Dep 5.280 3.780 2,760 Total Number of procedures Minutes to clean after each procedure Minutes for each procedure 2,280 30 Mat 5 5 15 Adin 10 15 25 50 San Print 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. Done Utili Total budgeted costs Enter any number in the edit fields and then click Check Answer. Print Done ? parts 4 remaining Clear All Check