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Marksman Pro manufactures two models of sport bows, Basic and Deluxe, using a combination of machining and hand finishing. Machine setup costs are driven by the number of setups. Indirect manufacturing labor costs increase with direct manufacturing labor costs. Equipment and maintenance costs increase with the number of machine-hours, and facility rent is paid per square foot. Capacity of the facility is 8,000 square feet, and Marksman Pro is using only 80% of this capacity. Marksman Pro records the cost of unused capacity as a separate line item and not as a product cost. For the current year, Marksman Pro has budgeted the following: E: (Click the icon to view the budgeted information.) (Click the icon to view other information.) Read the requirements Data Table Marksman Pro Budgeted Costs and Activities for the Requirement 1. Calculate the cost per unit of each cost-allocation base. Year Ended December 31, 2017 Select the formula you will use, then calculate the cost driver rate. (Enter any percentages as a rate to one decimal place. For example, maintenance.) Direct materials-Basic bows $ Cost Cost driver rate Total quantity of cost driver 413,000 420,000 350,000 Direct materials-Deluxe bows Indirect manuf. labor $ 165,200 = 0.4 of direct labor costs Machine setups Direct manufacturing laborBasic bows Direct manufacturing labor-Deluxe bows Indirect manufacturing labor costs Machine setup costs Equipment and maintenance costs Data Table 168,000 245,000 165,200 195,000 160,000 224,000 Other budget information follows: Facility rent Basic Deluxe $ 1,927,200 Total 14,000 7,000 23,000 9,000 Number of bows Machine-hours Number of setups Square footage of production space used 900 400 Print Done 3,000 3,400 Help Me Solve This Check Answer Marksman Pro manufactures two models of sport bows, Basic and Deluxe, using a combination of machining and hand finishing. Machine setup costs are driven by the number of setups. Indirect manufacturing labor costs increase with direct manufacturing labor costs. Equipment and maintenance costs increase with the number of machine-hours, and facility rent is paid per square foot. Capacity of the facility is 8,000 square feet, and Marksman Pro is using only 80% of this capacity. Marksman Pro records the cost of unused capacity as a separate line item and not as a product cost. For the current year, Marksman Pro has budgeted the following: (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 each cost-allocation base. Select the formula you will use, then calculate the cost driver rate. (Enter any percentages as a rate to one decimal place. For example, enter 10% as 1. Abbreviations used: manuf. = manufacturing, equip. = equipment, maint. = maintenance.) Cost Cost driver rate Total quantity of cost driver $ 413,000 Indirect manuf. labor $ 165,200 0.4 of direct labor costs Requirements Machine setups 1. 2. 3. Calculate the cost per unit of each cost-allocation base. What is the budgeted cost of unused capacity? Calculate the budgeted total cost and the cost per unit for each model. Why might excess capacity be beneficial for Marksman Pro? What are some of the issues Marksman Pro should consider before increasing production to use the space? 4. Print Done Help Me Solve This e Text Pages Get More Help heck