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Unit 4 – Individual Project (125 points)
Due: Sun, Apr 14 |Printer Friendly Version
Description
Assignment Details:
Pathos Radiology Center (PRC) performs X-rays, ultrasounds, computer tomography (CT) scans, and magnetic resonance imaging (MRI). PRC has developed a reputation as a top radiology center in the state. It has achieved this status because it constantly re-examines its processes and procedures. It has been using a single, facility wide overhead allocation rate. The Vice President of Finance believes that PRC can make better process improvements if it uses more disaggregated cost information. She says, “We have state-of-the-art medical imaging technology. Can’t we have state-of-the-art accounting technology?”
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.
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Individual Project Rubric
The Individual Project (IP) Grading Rubric is a scoring tool that represents the performance expectations for the IP. This Individual Project Grading Rubric is divided into components that provide a clear description of what should be included within each component of the IP. It’s the roadmap that can help you in the development of your IP.
Expectation Points Possible Points Earned Comments
Assignment-Specific: Calculates the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRI using direct technician labor costs as the allocation basis
30
Assignment-Specific: Calculates the budgeted cost per service of X-rays, ultrasounds, CT scans, and MRI if PRC allocated overhead costs using activity-based costing
30
Assignment-Specific: Evaluates the differences between the two costing models and assesses the value of activity-based costing for management profitability analysis and decision making
30
Assignment-Specific: Explains how the disaggregation of information could be helpful to PRC’s intention to continuously improve its services
25
Professional Language: Assignment contains accurate grammar, spelling, and punctuation with few or no errors.
10
Total Points
125
Total Points Earned
