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.