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?" (Click the icon to view the budgeted information.) (Click the icon to view additional information.) Read the requirements. 1 Data Table Rowley's Radiology Center Budgeted Information for the year Ended May 31, 2017 Technician labor X-rays Ultrasound CT scan 80,000 $ 111,000 $ 164,000 $ 42,240 256,000 424,960 22,000 16,200 23,800 MRI 113,200 $ 876,800 30,700 Depreciation Materials Administration Total 468,200 1,600,000 92,700 20,800 272,000 252,300 157,200 2,863,200 Maintenance Sanitation Utilities $ 144,240 $ 383,200 $ 612,760 $ 1,020,700 $ 2,900 2,600 Number of procedures Minutes to clean after each procedure Minutes for each procedure 5 - 5 4,400 5 15 3,100 15 25 35 40 Print Print Done Done Data Table RRC operates at capacity. The proposed allocation bases for overhead are: Administration Maintenance (including parts) Sanitation Utilities Number of procedures Capital cost of the equipment (use Depreciation) Total cleaning minutes Total procedure minutes Print Print Done Done 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. Print Done