The Radiology Center of Gwinnett $($RCG$)$ performs radiographic, ultrasound, CT$,$ and MRI imaging services. RCG has developed a reputation as a top Radiology Center in the region because of its commitment to a continuous improvement review process.RCG currently uses a single, facility$-$wide indirect cost allocation rate based on technician labor hours. The VP of Finance believes that RCG can make 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 cost accounting too?The table below summarizes the relevant budgeted information from the $3$rd Quarter, $2024.$Radiology Center of GwinnettBudgeted information for the $3$rd Quarter $2024$RadiographicUltrasoundCTMRITotalStandard billing rate per procedure$$250$$$250$$$525$$$650$Quarterly direct cost budget:$$Consumable materials$$22,080$$$16,500$$$24,000$$$31,250$$$93,830$Technician labor$$61,440$$$105,600$$$96,000$$$105,000$$$368,040$Quarterly indirect cost budget:$$Depreciation & Maintenance$$$$984,060$Administration$$$$95,610$Facility Sterilization$$$$196,180$Utilities$$$$134,350$Total indirect cost budget$$$$1,410,200$Quarterly operational data:$$Minutes for procedures $19,20022,00045,00087,500173,700$Technician labor hours $($TLH$)2,0482,4583,2003,00010,706$Post$-$procedure minutes$19,20066,00060,000112,500257,700$Number of procedures$3,8404,4003,0002,50013,740$The proposed activity$-$based cost $($ABC$)$ assignment bases for indirect costs are:$$ Depreciation and Maintenance minutes for procedures$$ Administration TLH$$ Facility Sterilization post$-$procedure minutes$$ Utilities number of proceduresRequired: $($be sure to document all your work$)1.$ Determine the gross profit per radiographic, ultrasound, CT$,$ and MRI procedure based on the facility$-$wide indirect allocation rate that RCG is currently using$\mathrm{.}2.$ Determine the gross profit per radiographic, ultrasound, CT scan, and MRI procedure assuming RCG uses activity$-$based cost rates as proposed by the VP of Finance$\mathrm{.}3.$ Briefly discuss the results. Is the measure of gross profit significantly impacted for any of the types of procedures?HINT #$1$: Since the cost of materials and labor is provided at the line of service level $($instead of per procedure$),$ you will probably find it helpful to allocate costs to the lines of service first, then compute the cost per procedure.Hint #$2$: After allocating indirect costs to each line of service, the total should reconcile to $$1,410,200.$ This is true for both the facility$-$wide allocation method and for the ABC method.