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a. Calculate the budgeted cost per service for X-rays,Ultrasounds, CT scans and MRIs using direct technician labour costs as the cost-allocation basis.
b. Calculate the budgeted cost per service of X-rays,Ultrasounds, CT scans and MRIs if RRC allocated overhead costs usingActivity-based Costing (ABC).
c. Explain how the disaggregation of information could be helpful to GMC’s intention to continuously improve its services.
d. Would you advise GMC to use the traditional overhead allocation method or adopt the ABC method?
