Bichop's Netballs is a manufacturer of high-quality basketballs and volleyballs. Setup costs are driven by the number of batches. Equipment and maintenance costs increase with the number of machine-hours, and lease rent is paid per square foot. Capacity of the facility is 10,000 square feet, and Bichop is using only 70% 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 requirements. Data Table Bichop's Netballs Budgeted Costs and Activities For the Year Ended December 31, 2017 Direct materialsbasketballs Direct materialsvolleyballs Direct manufacturing labor-basketballs 187,900 181,960 110,600 98,340 142,500 Direct manufacturing labor-volleyballs Setup Equipment and maintenance costs 96,600 160,000 Lease rent $ 977,900 Total Print Done Data Table - X Other budget information follows: Volleyballs Number of balls Basketballs 56,000 10,000 75,000 13,000 Machine-hours Number of setups Square footage of production space used 250 500 3,400 3,600 Print Done Requirements 1. Calculate the budgeted cost per unit of cost driver for each indirect cost pool. 2. What is the budgeted cost of unused capacity? 3. What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? 4. Why might excess capacity be beneficial for Bichop? What are some of the issues Bichop should consider before increasing production to use the space