Pathos Radiology Center (PRC) performs X-rays, ultrasounds, computer tomography (CT) scans, and magnetic resonance imaging (MRI). PRC has developed a reputation as a top radiology center in the state. PRC has achieved this status because it constantly reexamines its processes and procedures. PRC has been using a single, facility wide overhead allocation rate. The vice president of finance believes that PRC can make better process improvements if it uses more disaggregated cost information. She says, "We have state-of-the-art medical imaging technology. Can't we have state-of-the-art accounting technology?" Pathos Radiology Center Budgeted Information for the Year Ended May 31, 2022 X-rays Ultrasound CT Scan MRI Total Technician labor $ 62,000 $101,000 $155,000 $ 103,000 $ 421,000 Depreciation 42,240 256,000 424,960 876,800 1,600,000 Materials 22,600 16,400 23,600 31,500 94,100 Administration 20,000 Maintenance 250,000 Sanitation 252,500 Utilities 151,100 $126,840 $373,400 $603,560 $1,011,300 $2,788,700 Number of procedures 3,842 4,352 2,924 2,482 Minutes to clean after each procedure 5 5 15 35 Minutes for each procedure 5 15 25 40 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 1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRI using direct technician labor costs as the allocation basis. 2. Calculate the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRI if PRC allocated overhead costs using activity-based costing. 3. Evaluate the differences between the two costing models and assess the value of activity-based-costing for management profitability analysis and decision making. 4. Explain how the disaggregation of information could be helpful to PRC's intention to continuously improve its services.