Robertson'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?" 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. Robertson's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Total Technician labor $ 98,065 $ 145,000 $ 209,320 $ 140,000 $ 592,385 Depreciation 160,800 246,000 377,200 716,000 1,500,000 Materials Administration Maintenance 21,900 16,900 24,100 31,300 94,200 18,480 270,000 Sanitation 288,192 134,190 Utilities $ 280,765 $ 407,900 $ 610,620 $ 887,300 $ 2,897,447 Total Number of procedures 2,988 4,380 3,168 2,664 Minutes to clean after each procedure 5 5 20 30 Minutes for each procedure 10 20 15 50 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 Utilities Total cleaning minutes Total procedure minutes