Question: Rashaad's Radiology Centre ( RRC ) performs X - rays, ultrasounds, CT scans, and Budgeted information Additional information RRC operates at capacity. The proposed allocation
Rashaad's Radiology Centre RRC performs Xrays, ultrasounds, CT scans, and Budgeted information Additional information
RRC operates at capacity. The proposed allocation bases for overhead are as follows:
Administration
Maintenance including parts
Sanitation
Utilities
Number of procedures
Capital cost of the equipment depreciation
Total cleaning minutes
Total procedure minutes Required
Calculate the budgeted cost per service for rays, ultrasounds, CT scans,
and MRIs using direct technician labour as the cost allocation base.
Calculate the budgeted cost per service for rays, ultrasounds, CT scans,
and MRIs if RRC allocated overhead costs using ABC.
Explain how the disaggregation of information could be helpful to RRCs
intention to continuously improve its services.
MRIs. RRC has developed a reputation as a top radiology centre in the area. RRC
has achieved this status because it constantly reexamines its processes and
procedures. RRC has been using a single, facilitywide overhead allocation rate.
The VP of Finance believes that RRC can make better process improvements if it
uses more disaggregated cost information. She says, We have stateoftheart
medical imaging technology. Can't we have stateoftheart
accounting technology?"
The following budgeted information is available.
Click the icon to view the budgeted information.
Click the icon to
view additional information.
Required
Requirement Calculate the budgeted cost per service for rays, ultrasounds,
CT scans, and MRIs using direct technician labour costs as the allocation base.
Determine the formula to calculate the overhead costs allocated to each
service. Next, calculate the indirect costs allocated to each service. Do not round
until the final amount; then round the costs allocated to the nearest whole number.
My answers for Requirement are wrong. Please help
and explain the answers for the other two requirements. Thanks
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