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3. Rashaads Radiology Center (RRC) performs X-rays, ultrasounds, computer tomography (CT) scans, and magnetic resonance imagX-rays Ultrasound CT scan MRI Technician labor Depreciation Materials Administration Maintenance Sanitation Utilities Total b2: Data Table RRC operates at capacity. The proposed allocation bases for overhead are: Administration Maintenance (including

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Answer #1
1 Budgeted overhead rate=Total indirect costs/Total techinician labor cost
Total indirect costs:
$
Administration 18620
Maintenance 260000
Sanitation 271425
Utilities 106050
Total 656095
Budgeted overhead rate=656095/596450=$1.10 per DL $
X-rays Ultrasound CT scan MRI
Technician labor a 117,450 154,000 169,000 156,000
Depreciation 106,800 201,000 300,200 692,000
Materials 22,700 16,400 23,600 30,900
Indirect costs a*1.10 129,195 169,400 185,900 171,600
Total budgeted costs b 376,145 540,800 678,700 1,050,500
Number of procedures c 2,555 4,760 3,290 2,695
Budgeted cost per service b/c 147.22 113.61 206.29 389.80
2 (4). Cost (5). Total quantity of cost driver Cost driver rate
a b a/b
Administration 18620 Number of procedures 13300 1.4 (6). Per procedure
(2555+4760+3290+2695)
Maintenance 260000 Depreciation 1300000 0.20 (7). Per $ of depreciation
Sanitation 271425 Total cleaning minutes (Note:1) 246750 1.10 (8). Per cleaning minute
Utilities 106050 Total procedure minutes (Note:2) 265125 0.40 (9). Per procedure minute
Note:1
Total cleaning minutes:
X-rays Ultrasound CT scan MRI Total
Number of procedures a 2,555 4,760 3,290 2,695
Minutes to clean after each procedure b 10 10 20 40
Total cleaning minutes a*b 25550 47600 65800 107800 246750
Note:2
Total procedure minutes
X-rays Ultrasound CT scan MRI Total
Number of procedures a 2,555 4,760 3,290 2,695
Minutes for each procedure b 5 20 15 40
Total procedure minutes a*b 12775 95200 49350 107800 265125

Technician labor Depreciation Materials Administration (No.of procedures*cost driver rate) Maintenance (Depreciation exp.*Cos

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