Roxburys Radiology Center (RRC) performs X-rays, ultrasounds, CT scans, & MRIs. RRC has developed a reputation as a top Radiology Center in the state. RRC has achieved this status because it constantly reexamines its processes & 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. Cant we have state of the art accounting technology?

Roxburys Radiology Center

Budgeted Information

For the Year Ended May 30, 2018

	X-Rays	Ultrasound	CT Scan	MRI	Total
Technician Labor	64,000	104,000	119,000	106,000	393,000
Depreciation	136,800	231,000	400,200	792,000	1,560,000
Materials	22,400	16,500	23,900	30,800	93,600
Administration					19,000
Maintenance					260,000
Sanitation					267,900
Utilities					121,200
Total	223,200	351,500	543,100	928,800	2,714,700

Number of procedures	2555	4760	2390	2695
Minutes to clean after each procedure	10	10	20	40
Minutes for each procedure	5	20	15	40

Administration	Number of procedures
Maintenance	Depreciation
Sanitation	Total Cleaning Minutes
Utilities	Total Procedure Minutes

1. In the costing system currently used at the Roxbury Radiology Center, what is the overhead allocation rate?

2. When conventional method is used, what is the full cost for an Ultrasound?

3. When activity based cost is used, what is per unit overhead cost for an MRI?

4. When activity base cost is used, what is the overhead allocation rate for Maintenance? for Utility?