Jeeler's Netballs is a manufacturer of high-quality basketballs and volleyballs. Setup costs are driven by the number of setups. Equipment and maintenance costs increase with the number of machine-hours, and lease rent is paid per square foot. Capacity of the facility is 16,000 square feet, and Jeeler is using only 70% of this capacity. Jeeler records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Jeeler:

Budgeted Costs and Activities

for the Year Ended December 31, 2020

Direct materialsbasketballs $232,760

Direct materialsvolleyballs 236,430

Direct manufacturing laborbasketballs 110,600

Direct manufacturing laborvolleyballs 100,210

Setup 160,000

Equipment and maintenance costs 83,600

Lease rent 256,000

Total $1,179,600

Other budget information follows:

	Basketballs	Volleyballs
Number of balls	64,000	85,000
Machine-hours	10,000	12,000
Number of setups	450	350
Square footage of production space used	3,340	7,860

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, "maint." = maintenance.)

Cost

Total quantity of cost driver

=

Cost driver rate

Setup

$160,000

800

=

$200.00

per setup

Equip. and Maint.

$83,600

22,000

=

$3.80

per machine hour

Lease rent, etc.

$256,000

16,000

=

$16.00

per square foot

Requirement 2. What is the budgeted cost of unused capacity?

Select the formula you will use, then calculate the cost of unused capacity.

Unused capacity		Cost driver rate	=	Cost of unused capacity
4,800		16	=	$76,800

Requirement 3. What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? (Enter the cost per unit to the nearest cent.)

	Basketballs
Direct materials	232,760
Direct manufacturing labor
Setup
Equipment and maintenance
Lease rent, etc.
Budgeted total costs

B. Volleyball