Tools View 20215 ACC1302 Midterm X-rays Ultrasound CT Scan Total QUESTION 4 - Activity Based Costing and $79,200 $72,000 $78,750 $276,030 Labour $46,020 201,000 673,125 Depreciation 24,180 329,250 1,227,555 12,375 18,000 23,438 70,373 Management (40 minutes, 16 marks) Direct materials 16,560 15,458 Administration 185,490 Maintenance Waste disposal 147,135 Samir's Sonography Centre (SSC) performs four different Utilities 100,763 procedures: X-rays, ultrasounds, CT scans, and MRIs. They are Totals $86,820 $292,575 $419,250 $775,313 $2,022,803 known for having an excellent reputation for accurate results and Other information about the number of procedures and the time it takes for each procedure: client service. They have achieved this level of success through the X-rays Ultrasound CT Scan MRI Total Number of procedures 2,880.00 3,300.00 2,250.00 1,875.00 10,305.00 constant review of their processes and analyzing how to improve Minutesto clean after each procedure 3.75 3.75 11 25 26.25 45.00 Minutes to perform each procedure 3.75 11.25 15.00 33.75 63.75 their services. They currently use a single, facility-wide overhead allocation rate. The CFO states that they believe they can make The proposed allocation bases for overhead using the new ABC some process improvements by allocating costs using an activity- system are as follows: based costing system. The result would be to segregate the Activity Allocation base administration, maintenance, sanitation and utilities costs. She Administration Number of procedures Maintenance Depreciation thinks ABC costing might be the best way to improve their Waste disposal Total cleaning minutes accounting systems. Utilities Total procedure minutes Use the following budgeted financial information to respond to the REQUIRED questions. 1. Assume a traditional (simple) costing system that they currently use. What is the budgeted cost per service for X- rays, ultrasounds, CT scans, and MRIs? (4 marks)