Yorkville Radiology Centre (VRC) performs X-rays, ultrasounds, CT

scans, and MRIS. YRC has developed a reputation as a top radiology centre in the area. YRC has achieved this status because it constantly re-examines its processes and procedures YRC has been using a single, facility-wide overhead allocation rate. The VP of Finance believes that YRC can make better process improvements if it uses more disregated cost information She says we have state-of-the-art medical imaging technology. Can't we have state-of-the-art accounting technology?" The following budgeted information is available:
The following budgeted information is available:

X-RaysUltrasoundCT ScanMRITotal
Technician Labour$61,440$1,05,600$96,000$1,05,000$3,68,040
Depreciation$32,240$2,68,000$4,39,000$8,97,500$16,36,740
Materials$22,080$16,500$24,000$31,250$93,830
Administration$20,610
Maintenance$2,47,320
Sanitation$1,96,180
Utilities$1,34,350
Totals$1,15,760$3,90,100$5,59,000$10,33,750$26,97,070

Number of Procedures 3,840  4,400  3,000  2,500  13,740
Minutes to clean after each proceure 5  5  15  35
Minutes for each procedure 5  15  20  45
Sanitation Minutes 19,200  22,000  45,000  87,500  1,73,700
Procedure minutes 19,200  66,000  60,000  1,12,500  2,57,700

YRC operates at capacity. The proposed allocation bases for overhead are as follows:
Allocation BaseDriver
AdministrationNumber of procedures
Maintenance (including parts)Capital cost of equipment (depreciation)
SanitationTotal cleaning minutes
UtilitiesTotal procedure minutes


      1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIs using the direct technician labour as the cost allocation base.   2. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIs using activity-based costing (ABC)