Boards manufactures two models of surfboards, Basic and Competition, in a facility in Southern California. In fabrication, machine setup costs are driven by the number of setups, machine maintenance and utility costs increase with the number of machine hours, and indirect labor costs increase with direct labor hours. Facility rent and machine depreciation are fixed, and are the basis of manufacturing capacity. Fixed costs are allocated equally to each unit produced, regardless of model. Currently, Rogue uses 60% of its manufacturing capacity. The cost of unused capacity is not assigned to products, but is expensed as a separate line item. For 2020, Rogue has budgeted the following:

Rogue Boards
Budgeted Costs for the
Year Ended December 31, 2020
Direct materialsBasic boards	$202,500
Direct materialsCompetition boards	429,000
Direct manufacturing laborBasic boards	33,000
Direct manufacturing laborCompetition boards	99,000
Machine setup costs	100,000
Machine maintenance and utility costs	326,000
Indirect labor costs	52,800
Facility rent	246,000
Machine depreciation	123,000

Other information:

	Basic	Competition
Units produced	4,500	7,800
Machine hours	25,000	56,500
Number of setups	300	700
Direct labor-hours	3,000	9,000

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.	Rogue has the opportunity to sublease the unused factory space to a startup company that will be manufacturing surf apparel. None of Rogue's machinery will be used. Is there a minimum annual rent that Rogue should charge? Are there any other considerations that Rogue's management should make prior to offering the space?