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Ridge's Radology Conter (RRC) performs X-rays, Ultasounds, computer tomography (CT) scans, and magnetc resonance inaging (MRI). RRC has developed a reputation as a top radiology
Ridge's Radology Conter (RRC) performs X-rays, Ultasounds, computer tomography (CT) scans, and magnetc resonance inaging (MRI). RRC has developed a reputation as a top radiology center in the state. RRC has achieved this status becouse in constanty reexamines its processes and procedures. RRC has been using a single, facilfy-wide overtead alocation rate. The vice president of finance believes that RRC can mako better process improvements if it uses more disaggregated cost information. She says, We have state-of the-art medical imaging technology. Cant we have state-of the-art accounting technology? Cick the icon to view the budgeled information) [Clck the icon to view additional information.) Read the requirements Requirement 1. Calculate the budgeled cost per service for X-rayn, vitrascunds. CT scans, and MRI using drect technician labor costs as the allocation basis. Start by calculating the bubgetod ovorhead rato for total indirect costs based on total labot. First select the focmula, then enter the opplicable amounts and caloulate the rate. (Round your answer to two decimal places, X XXX. Abtreviations used: DC = Dieect cost, DL = Drect labor, 5 = dolar) Ridge's Radiology Center Budgeted Information for the Year Ended May 31, 2020 Data table RRC operates at capacity. The proposed allocation bases for overhead are: Requirements 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
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