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Dexman'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
Dexman'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 13,000 square feet, and Dexman is using only 60% of this capacity. Dexman records the cost of unused capacity as a separate line item, not as a product cost. The following is the budgeted information for Dexman. (Click the icon to view the budgeted information.) (Click the icon to view other information.) Required Requirement 1. Calculate the cost per unit of cost driver for each indirect cost pool. ..... Select the formula you will use, and then calculate the cost driver rate. (Round your answers to the nearest cent. Abbreviations used: "equip." = equipment, "maint." = maintenance.) Other information = Cost driver rate Other budget information follows: Basketballs Volleyballs Number of balls 58,000 110,000 Machine-hours 11,500 14,000 Number of setups 350 Square footage of production space used 3,200 4,600 Print Done Help Me Solve This eText Pages Get More Help Budgeted information Dexman's Netballs Budgeted Costs and Activities For the Year Ended December 31 Direct materials-basketballs Direct materials-volleyballs Direct manufacturing labour-basketballs Direct manufacturing labour-volleyballs Setup Equipment and maintenance costs 450 Lease rent Total Print Done $ 232,050 531,280 110,400 100,820 120,000 99,450 169,000 $ 1,363,000 Check Answer
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