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Bichop's Netballs is a manufacturer of high-quality basketballs and volleyballs. Setup costs are driven by the number of setups. Equipment and maintenance costs increase with
Bichop's Netballs is a manufacturer of high-quality basketballs and volleyballs. Setup costs are driven by the number of setups. Equipment and maintenance costs increase with the number of machine-hours, and lease rent is paid per square foot. Capacity of the facility is 11,000 square feet, and Bichop is using only 80% of this capacity. Bichop records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Bichop: (Click the icon to view the budgeted information.) (Click the icon to view other information.) Read the Data table Setup 228,000 Equipment and maintenance costs Lease rent Total 83,600176,000$1,031,700 Data table Requirement 1. Calculate the cost per unit of cost driver for each indirect-cost pool. Select the formula you will use, then calculate the cost driver rate. (Round your answers to the nearest cent. Abbreviations used: "equip." = equipment, "maint." = maintenance. For purposes of this requirement, ignore the cost of unused capacity in your computations.)
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