Ridge'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?"

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.

Ridge'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 21,800 16,300 23,700 31,000 92,800 Administration 18,620 Maintenance 260,000 Sanitation 271,425 Utilities 106,050 Total $ 246,050 $ 371,300 $ 492,900 $ 879,000 $ 2,645,345 Number of procedures 2,555 4,760 3,290 2,695 Minutes to clean after each procedure 10 10 20 40 Minutes for each procedure 5 20 15 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