Hetcher'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 18,000 square feet, and Hetcher is using only 70% of this capacity. Hetcher records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Hetcher (Click the icon to view the budgeted information.) EB(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 ud" -cauiment "aaint"-mainteance Data Table - X Cost driver rate Data Table Other budget information follows: Hetcher's Netballs Basketballs Volleyballs Requirements Budgeted Costs and Activities 130,000 Number of balls 63,000 For the Year Ended December 31. 2017 Machine-hours 13,500 14,000 1. Calculate the budgeted cost per unit of cost driver for each indirect cost pool. Direct materials-basketballs 257,520 Number of setups 150 500 2. What is the budgeted cost of unused capacity? Direct materials-volleyballs 478,580 Square footage of production space used 3,340 9,260 3. What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? Direct manufacturing labor-basketballs 110.400 4. Why might excess capacity be beneficial for Hetcher? What are some of the issues Hetcher should consider before increasing production to use the space? Direct manufacturing labor-volleyballs 99,500 Print Done Setup 143,000 115,500 Equipment and maintenance costs Print Done 216.000 Lease rent 1,420,500 Total Print Done Hetcher'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 18,000 square feet, and Hetcher is using only 70% of this capacity. Hetcher records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Hetcher (Click the icon to view the budgeted information.) EB(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 ud" -cauiment "aaint"-mainteance Data Table - X Cost driver rate Data Table Other budget information follows: Hetcher's Netballs Basketballs Volleyballs Requirements Budgeted Costs and Activities 130,000 Number of balls 63,000 For the Year Ended December 31. 2017 Machine-hours 13,500 14,000 1. Calculate the budgeted cost per unit of cost driver for each indirect cost pool. Direct materials-basketballs 257,520 Number of setups 150 500 2. What is the budgeted cost of unused capacity? Direct materials-volleyballs 478,580 Square footage of production space used 3,340 9,260 3. What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? Direct manufacturing labor-basketballs 110.400 4. Why might excess capacity be beneficial for Hetcher? What are some of the issues Hetcher should consider before increasing production to use the space? Direct manufacturing labor-volleyballs 99,500 Print Done Setup 143,000 115,500 Equipment and maintenance costs Print Done 216.000 Lease rent 1,420,500 Total Print Done
