| 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 |

3. Rashaad's Radiology Center (RRC) performs X-rays, ultrasounds, computer tomography (CT) scans, and magnetic resonance imaging...
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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 vice president of finance believes that RRC can make better process improvements if it uses more disaggregated cost information. She says, "We have state-of-the-art medical imaging technology....
RidgeRidge'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 vice president of
finance believes that RRC can make better process improvements if
it uses more disaggregated cost information. She says, "We have
state-of-the-art medical imaging technology....
Rathburn'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 i using a single, facility-wide overhead allocation rate. The vice president of finance believes that RRC can make better process improvements if it uses more disaggregated cost information. She says, "We have state-of-the-art medical imaging technology. E: (Click the icon to view the budgeted information.)...
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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 vice president of finance believes that RRC can make better process improvements if it uses more disaggregated cost information. She says, 'We have state-of-the-art medical imaging technology....
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