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 12,000 square feet, and Hajor is using only 80% 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 rate. (Round your answers to the nearest cent. Abbreviations used: "equip." = equipment, "main |= Cost driver rate Data Table Direct materials-basketballs Direct materials-volleyballs Direct manufacturing labor-basketballs Direct manufacturing labor-volleyballs Setup Equipment and maintenance costs Lease rent Hajor's Notballs Budgeted Costs and Activities For the Year Ended December 31, 2017 $ Total 234,500 775,840 109,100 100,210 126,000 108.650 156,000 $ 1,610,300 Data Table Other budget information follows: Number of balls Machine-hours Number of setups Square footage of production space used Basketballs 57,000 12,500 200 3,250 i 1. 2. 3. 4. Requirements Volleyballs 140,000 14,000 500 6,350 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? Print Done Check Answer ?