assigned to products, but is expensed as a separate tine lom. For 2020 . Kaly has budgeled the foliowing: Resd the maultements. numaraior that accounts for the foet that Katy uses only 70% of its manufacturing capacity.) Requirement 2. Calculate the cost of unused capacity for the year The cost of unused capacity for the yoar e assigned to products, but is expeneed as a separece line item. For 2020 , Katy hass budgetod the tollowing: (Chick tha icon io view the buidgeted informationi) Click the icon to view other irsomation.) Read the tantuirements. antounts to the nearest whole dollar. Enter the cost per unit amounts to the nearest cent, 3.) Katy Boords manufacturos two modele of surfboads, Basic and Compotifich, in a facility in Southern Colforria. In fabrieation, machine sotup costs are driven ty the nimber of sotups, machine maintenance and utilty costs increase with the number of machine hours, and indirect labor costs increase with direct labor hours. Facility rent and reachine ceprecsion are fixed, and ate the basis of manufachuring capacity. Food corts are atlocatad equally to each unit produced, regandiess of model. Currenty, Katy usas 70% of its manstacturing capacty. The cost of unused capatity is not assigned to products, but is expensed as a separate ine them. For 2020, Katy has budgeted the followner: (Cilick the icon to vicw the buibgoled information.] (Click the icon to viow other information.) Read the requirements. Requirament 4. Katy has the opporturity to sublease the unused factory space to a startup company that will be manutactureg surf appacel. None of Katy's mactinary wit be used: is there a miremarm annual rent that Katy shouls charge? Are there any other considerations that Katys managenent should make prior to offerng the soace? Start by determining the cost of the unused factialy rent The cost of ununed facility rent for the year = The cost of unused facibly rent identified in the preceding step. the minimum fote that Katy should charge for the use of the space. Tho facility rent is a would be benieficial. Before subleiting the space, though. should Katy's management should Data table Data table Requirements 1. Calculate the cost-allocation rate for each of the activity-cost pools for variable and fixed overhead costs. 2. Calculate the cost of unused capacity for the year. 3. Calculate the total cost for each model, and the cost per unit for each model. 4. Katy has the opportunity to sublease the unused factory space to a startup company that will be manufacturing surf apparel. None of Katy's machinery will be used. Is there a minimum annual rent that Katy should charge? Are there any other considerations that Katy's management should make prior to offering the space
