Rowley's Radiology Centre (RRC) performs X-rays, ultrasounds, CT scans, and MRIs. RRC has developed a reputation as a top radiology centre in the area. 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 VP 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?" The following budgeted information is available. Click the icon to view the budgeted information.) Required (Click the icon to view additional information.) Requirement 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIs using direct technician labour costs as the allocation base. Determine the formula to calculate the overhead costs allocated to each service. Next, calculate the indirect costs allocated to each service. (Do not round until the final amount; then round the costs allocated to the nearest whole number.) Budgeted overhead rate Indirect costs allocated to service Assig Budgeted information estion Budgeted Information - Save d a reputa rocesses es that RF For the Year Ending May 30 Questio X-Rays Ultrasound CT Scan MRI Total Technician labour $ 63,000 $ 106,500 $ 97,500 $ 106,000 $ 373,000 h.) Depreciation 32,700 266,000 435,000 892,000 1,625,700 Questio Materials 22,600 16,100 24,400 31,000 94,100 Administration 21,000 Maintenance 246,000 Questio Sanitation Utilities Questio Totals 193,000 ng direct 138,000 ct costs $ 118,300 $ 388,600 $ 556,900 $ 1,029,000 $ 2,690,800 st Questio Number of procedures 4,100 4,600 3,200 2,600 allocated Minutes to clean after each procedure 10 5 20 40 ce Minutes for each procedure 10 20 25 40 Questio K Rowley's Radiology Centre (RRC) performs X-rays, ultrasounds, CT scans, and MRIs. RRC ha as a top radiology centre in the area. RRC has achieved this status because it constantly reexa procedures. RRC has been using a single, facility-wide overhead allocation rate. The VP of Fin can make better process improvements if it uses more disaggregated cost information. She say Required 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIs using direct technician labour as the cost allocation base. 2. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIs if RRC allocated overhead costs using ABC. 3. Explain how the disaggregation of information could be helpful to RRC's intention to continuously improve its services. Print Done ng tec - X itional ns, an iculate ated to India Additional information DD. hno - - X info RRC operates at capacity. The proposed allocation bases for overhead are as follows: Administration Number of procedures Maintenance (including parts) Capital cost of the equipment (depreciation) Sanitation Utilities Total cleaning minutes Total procedure minutes d M e th the Print Done rect