Question

Riddick'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 disaggregated cost information. She says. "We have state-of-the-art medical imaging technology. Can't we have state-of-the-art account A Data Table i Data Table Rea Beg RRC operates at capacity. The proposed allocation bases for overhead are: Administration Number of procedures Maintenance (including parts) Capital cost of the equipment (use Depreciation) Sanitation Total cleaning minutes Utilities Total procedure minutes Add Total Mai 448.320 San Riddick's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Technician labor S S 73,500 S 113,100 S 160,720 $ 101,000 $ Depreciation 6,300 276,500 466,200 851,000 Materials 22.600 16,400 23,900 30,900 Administration Maintenance Sanitation 1,600,000 93.800 UU Print Done 22.560 Now nearest WHOIS. TOUT LE Lust per service U VIETIEBSTEM, to . 240.000 263,870 146.250 Utilities S 102,400 S 406,000 S 650,820 $ 982,900 $ 2,814,600 Tec Der Mat Add i Requirements 5,280 3,780 2.760 2.280 Total Number of procedures Minutes to clean after each procedure Minutes for each procedure 5 5 15 30 Mai 10 15 25 50 Sal Utill 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRI using direct lochnician labor costs as the allocation basis. 2. Calculate the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRI I 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. Print Done Tote Budgeted cost per service Print Done Enter any number in the edit fields and then click Check Answer. ? 4 remaining Clear All Check Answer

Answer 1

*Any doubt please comment

	X - Rays
Technician labor	73500
Depreciation	6300
Materials	22600
Administration	8448
Maintenance	945
Sanitation	44880	[5280*5*1.7]
Utilities	26400	[5280*10*0.5]
Total budgeted costs	183073
Budgeted cost per service	34.67	[183073/5280]