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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
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, $ = dollar.) Total indirect material costs Total technician labor cost Budgeted overhead rate i Data Table + = + i Data Table MRI Total 448,320 Riddick's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan Technician labor $ 73,500 $ 113,100 S 160,720 $ 101.000 $ Depreciation 6,300 276,500 466,200 851,000 Materials 22,600 16,400 23,900 30,900 Administration 1,800,000 93.800 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 22,560 Maintenance Sanitation 240,000 263,670 146,250 Utilities Print Done $ 102,400 S 406,000 S 650,820 $ 982,900 $ 2,814,600 5,280 3,780 2,760 2.280 Choose from any list or enter any number in the input fields and then click Check Answer. Total Number of procedures Minutes to clean after each procedure Minutes for each procedure 5 5 15 30 10 15 25 50 13 parts remaining
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