'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?"

Reston's Radiology Center Budgeted Information for the year Ended May 31, 2017

X-rays

Ultrasound

CT scan

MRI

Total

Technician labor

$60,000

$104,500

$178,500

$107,000

$450,000

Depreciation

206,400

249,000

399,600

545,000

1,400,000

Materials

21,800

16,800

24,400

31,500

94,500

Administration

19,800

Maintenance

280,000

Sanitation

281,600

Utilities

125,100

Total

$288,200

$370,300

$602,500

$683,500

$2,651,000

Number of procedures

2,800

4,600

3,200

2,600

Minutes to clean after each procedure

5

5

15

35

Minutes for each procedure

10

15

20

45

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.