Explain how the disaggregation of information could be helpful to GMC’s intention to continuously

Part A You are a management accountant at WCP Management 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 Finance Manager 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: 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 using Activity-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.