Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Roxbury'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
Roxbury'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?" E: (Click the icon to view the budgeted information.) : (Click the icon to view additional information.) Read the requirements Requirement 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRI using direct technician labor costs as the allocation basis. Start by calculating the budgeted overhead rate for total indirect costs based on total labor. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to two decimal places, X.XX. Abbreviations used: DC = Direct cost, DL = Direct labor, $ = dollar.) J = Budgeted overhead rate - X i - i Data Table X Data Table i Requirements X - 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. Roxbury's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Technician labor 117,450 $ 154,000 $ 169,000 $ 156,000 $ Depreciation 106,800 201,000 300,200 692,000 Materials 22,600 17,000 23,700 31,500 Administration 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 Total cleaning minutes Utilities Total procedure minutes Total 596,450 1,300,000 94.800 18,620 260,000 271,425 106,050 2,647,345 Print Print Done Done Print Done Maintenance Sanitation Utilities $ 246,850 $ 372,000 $ 492,900 $ 879,500 $ 2,555 Number of procedures Minutes to clean after each procedure Minutes for each procedure 4,760 - 10 20 3,290 20 15 2,695 40 40 1 Print Done Choose from any list or enter any number in the input fields and then click Check Answer Roxbury'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?" E: (Click the icon to view the budgeted information.) : (Click the icon to view additional information.) Read the requirements Requirement 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRI using direct technician labor costs as the allocation basis. Start by calculating the budgeted overhead rate for total indirect costs based on total labor. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to two decimal places, X.XX. Abbreviations used: DC = Direct cost, DL = Direct labor, $ = dollar.) J = Budgeted overhead rate - X i - i Data Table X Data Table i Requirements X - 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. Roxbury's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Technician labor 117,450 $ 154,000 $ 169,000 $ 156,000 $ Depreciation 106,800 201,000 300,200 692,000 Materials 22,600 17,000 23,700 31,500 Administration 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 Total cleaning minutes Utilities Total procedure minutes Total 596,450 1,300,000 94.800 18,620 260,000 271,425 106,050 2,647,345 Print Print Done Done Print Done Maintenance Sanitation Utilities $ 246,850 $ 372,000 $ 492,900 $ 879,500 $ 2,555 Number of procedures Minutes to clean after each procedure Minutes for each procedure 4,760 - 10 20 3,290 20 15 2,695 40 40 1 Print Done Choose from any list or enter any number in the input fields and then click Check
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started