Rowley'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?" Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRI using direct technician labor costs as the allocation basis. Calculate the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRI if RRC allocated overhead costs using activity-based costing. Explain how the disaggregation of information could be helpful to RRC's intention to continuously improve its services. 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 Rowley's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Technician labor Depreciation Materials Indirect costs Total service cost Divided by: Number of procedures Total X-rays Ultrasound CT scan MRI X-rays Ultrasound CT scan MRI Technician labor Depreciation Materials Administration Maintenance Sanitation Utilities Total Number of procedures Minutes to clean after each procedure Minutes for each procedure Budgeted cost per service Minutes to clean Number of Total of all after each procedure x procedure for service = minutes to clean X-rays Ultrasound = x CT Scan x = MRI Total Minutes for Number of Budgeted costs + Total quantity of cost driver = Cost driver race each procedure x procedure for service = Maintenance X-rays x = Budgeted costs Total quantity of cost driver Cost driver rate Jitrasound x = Sanitation CT Scan = MRI Total Total of all procedure minutes Rowley's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Total Technician labor $ 60,000 $ 104,500 $ 178,500 $ Depreciation 206,400 249,000 399,600 107,000 $ 545,000 450,000 1,400,000 Materials Administration Maintenance Sanitation 22,000 16,100 24,100 31,200 93,400 19,800 280,000 281,600 125,100 Utilities $ 288,400 $ 369,600 $ 602,200 $ 683,200 $ 2,649,900 Total Number of procedures 2,800 4,600 3,200 2,600 Minutes to clean after each procedure 5 5 15 35 Minutes for each procedure 10 15 20 45