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? 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, XXX, Abbreviations used: DC Direct cost, DL. Direct labor, $ dollar) Total Indirect costs Total technician labor cost Budgeted overhead rate I X i 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 h ed Total a 11 Roxbury's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Technician labor 73,500 $ 113,100 $ 160,720 $ 101,000 $ Depreciation 6,300 276,500 466,200 851,000 Materials 22,100 16,300 23,900 31,100 Administration Maintenance Sanitation m C el 448,320 1,600,000 93,400 22,560 240,000 263,670 146,250 Utilities $ 101,900 $ 405,900 $ 650,820 $ 983,100 $ 2,814,200 5,280 3,780 2,760 2,280 5 5 15 30 Number of procedures Minutes to clean after each procedure Minutes for each procedure 10 15 25 50 x 1 or i Data Table he = d 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 Print Done