Table: Pathos Radiology Center Budgeted Information for the Year.

Table: Pathos Radiology Center Budgeted Information for the Year Ended May 31, 2022



  • Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRI using direct technician labor costs as the allocation basis.
  • Calculate the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRI if PRC allocated overhead costs using activity-based costing.
  • Evaluate the differences between the 2 costing models, and assess the value of activity-based costing for management profitability analysis and decision making.
  • Explain how the disaggregation of information could be helpful to PRC’s intention to continuously improve its services.
Pathos Radiology Center Budgeted Information for the Year Ended May 31, 2022 X-ravs Ultrasound CT Scan MRI Total Technician labor $ 62,000 $101,000 $155,000 $ 103,000 $ 421,000 Depreciation 42,240 256,000 424,960 826,800 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 $126,350) $323,300 $603,560 W $217.83 200 Number of procedures 3,342 4,352 2,924 2,482 Minutes to clean after 5 5 15 35 each procedure Minutes for each 5 15 25 40 procedure 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

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