You are a management accountant atWCPManagement Consultants. You have been approached by Greenwood Medical Centre (GMC). GMC performs X-rays, ultrasounds, CT scans and MRIs. It has developed a reputation as a top radiology centre in the state. GMC has achieved this status because it constantly re-examines its processes and procedures. Traditionally, GMC has been using a single organisation-wide overhead allocation rate. The FinanceManager believes that GMC can make better process improvements if it uses more disaggregated cost information. In a recent meeting,he argued."We have state-of-the-art medical imaging technology. Can't we have state-of-the-art accounting technology?"GMC has provided you with the following information: Greenwood Medical CentreBudgeted informationFor the year ended 30 June 2015 X-rays Ultrasound CT scan MRI TotalTechnician labour $61 440 $105 600 $96 000 $105 000 $368 040Depreciation 32 240 268 000 439 000 897 500 1 636 740Materials 22 080 16 500 24 000 31 250 93 830Administration 20 610Maintenance 247 320Sanitation 196 180Utilities 134 350Total $115 760 $390 100 $559 000 $1 033 750 $2 697 070Number of procedures 3840 4400 3000 2500 Minutes to clean after each procedure 5 5 15 35 Minutes for each procedure 5 15 20 45 GMC operates at capacity.The proposed cost-allocation bases for overhead are as follows:Administration Number of proceduresMaintenance (including parts) Capital Cost of the Equipment (use depreciation)Sanitation Total cleaning minutesUtilities Total procedure minutes Required: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? Explain.