Jordan Company is a manufacturer of high quality of children toys, small and big toys. Setup costs are driven by the number of batches. Equipment and maintenance cost increase with the number of machine-hours, and lease rent is paid per square foot. Capacity of the facility is 30,000 square feet and the company is using only 80% of this capacity. They company records the cost of unused capacity as a separate line item and not as a product cost. Below is the budgeted in formation: Direct materials-small toys 437,000 Direct materials- big toys 728,700 Direct manufacturing labor-small toys 224,850 Direct manufacturing labor-big toys 219,250 Setup 293,000 Equipment and maintenance costs 237,200 Lease rent 448,000 Other information: Number of small toys 72,000 Number of big toys 108,000 Machine hours for small toys 14,000 Machine hours for big toys 15,000 Number of toys per batch (small 180), (big 216). Square footage of production space used is 40% for small toys and 60% for big toys.

The cost per unit of cost driver (rate) for setup: