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 19,000 square feet, and Hajor is using only 60% 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: 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 Hajor? What are some of the issues Hajor should consider before increasing production to use the space? Hajor's Netballs Budgeted Costs and Activities For the Year Ended December 31, 2017 Direct materials-basketballs Direct materials-volleyballs Direct manufacturing labor-basketballs Direct manufacturing labor-volleyballs Setup Equipment and maintenance costs Lease rent $ 146,030 275,210 99,620 98,340 110,000 120,400 304,000 $ 1,153,600 Total Other budget information follows: Basketballs Volleyballs Number of balls 56,000 90,000 Machine-hours 14,500 13,500 Number of setups 300 250 Square footage of production space used 3,250 8,150