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Hajor'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

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Hajor'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 Hajor is using only 70% of this capacity. Hajor records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Hajor: Click the icon to view the budgeted information) Click the icon to view other information) Read the requirements 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 rato. (Round your answers to the nearest cont. Abbreviations usedequip. * = equipment, "maint" maintenance) Cost Total quantity of cost driver Cost driver rato Setup - X i Data Table Hajor's Netballs Budgeted Costs and Activities For the Year Ended December 31, 2017 Direct materialsbasketballs $ 169,900 Direct materials-volleyballs 587,100 111,800 96,200 Direct manufacturing labor-basketballs Direct manufacturing labor-volleyballs Setup Equipment and maintenance costs 178,500 121,900 150,000 Lease rent $ Total 1,415,400 Print Done i Data Table x Other budget information follows: Basketballs Volleyballs 56,000 120,000 Number of balls Machine-hours Number of setups Square footage of production space used 13,500 13,000 450 600 3,340 3,660 X * Requirements sed 1. 2. 3. Calculate the budgeted cost per unit of cost driver for each indirect cost pool. What is the budgeted cost of unused capacity? What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? Why might excess capacity be beneficial for Hajor? What are some of the issues Hajor should consider before increasing production to use the space? 4. Print Done

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