Question

Data Table Raynham's Radiology Center Budgeted Information for the year Ended May 31, 2017 X-rays Ultrasound CT scan MRI Total Technician labor 73,500 $ 113,100 $ 160,720 $ 101,000 $ 448,320 Depreciation 6,300 276,500 466,200 851,000 1,600,000 Materials 22,400 16,100 23,800 31,100 93,400 Administration 22,560 Maintenance 240,000 Sanitation 263,670 Utilities 146,250 $ 102,200 $ Total 405,700 $ 650,720 $ 983,100 $ 2,814,200 Number of procedures 5,280 3,780 2,760 2,280 Minutes to clean after each procedure 5 5 15 30 Minutes for each procedure 10 15 25 50 Print Done
The red arrows indicate that the answers were wrong. Can you show me how to do the work to find the correct answers? Please be detailed.

all of the answers shown are correct. the reason im posting this question is because i want someone to show me how to get the answers. specifically the red areas. i need help figuring out the red areas even though the numbers are correct i want to see how you solve this question. nothing is missing please just show all your work.

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Answer 1

Req. 1	To calculate the budgeted OH rate, just divide the total indirect cost (which comprises of Administration, Maintenance, Sanitation and Utilities) by direct technician labor costs
	=	($ 22560 + $ 240000 + $ 263670 + $ 146250) / $ 448320
	=	$      1.50
	Computation of total budgeted costs for each service
	Technician labor cost, depreciation cost and materials shall be allotted just the way they're allocated in the question because they are direct costs.
	To allocate indirect cost, just multiply the technician labor cost of each department with the budgeted OH rate computed above
	Like, for X-Ray department, indirect cost to be allocated is $ 73500 x 1.5 = $ 110250
	for Ultrasound, it is $ 113100 x 1.5 = $ 169650, and so on
	Now, to get budgeted cost per service, divide the total cost by no. of procedures.
	Like, for X-Rat, budgeted cost per service is $ 212450 / 5280 = $ 40.24 and so on

Req. 2	To calculate the cost driver rate, you simply need to divide each indirect cost with
	aggregate of respective cost driver volume.
	Like, cost driver for Administration is No. of procedures
	Therefore, cost driver rate for administration cost would be $ 22560 / (5280 + 3780 + 2760 + 2280) = $ 1.6
	Now, to allocate the indirect cost to services under Activity Based Costing, you need to multiply the cost driver rate
	with each cost driver volume.
	Like, to allocated administration cost to X-Ray, just multiply the cost driver rate of administration with
	volume of procedures, i.e., $ 1.6 x 5280 = $ 8448
	Allocating administration cost to Ultrasound = $ 1.6 x 3780 = $ 6048
	Now, after to get the total budgeted cost of each service, divide it by no. of procedures to get budgeted cost
	per service.

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