Lang Boards manufactures two models of surfboards, Basic and Competition, in a facility in Southern California. In fabrication, machine setup costs are driven by the number of setups, machine maintenance and utility costs increase with the number of machine hours, and indirect labor costs increase with direct labor hours. Facility rent and machine depreciation are fixed, and are the basis of manufacturing capacity. Fixed costs are allocated equally to each unit produced, regardless of model. Currently, Lang uses 80% of its manufacturing capacity. The cost of unused capacity is not assigned to products, but is expensed as a separate line item. For 2020, Lang 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-allocation rate for each of the activity-cost pools for variable and fixed overhead costs. Select the formula you will use, then calculate the cost driver rate. (Round the cost driver rates to the nearest cent, $X.XX. "Machine maint & util" = "Machine maintenance and utility costs". When calculating the cost driver rates for facility rent and depreciation, use a numerator that accounts for the fact that Lang uses only 80% of its manufacturing capacity.) Cost driver rate Requirements 1. Calculate the cost-allocation rate for each of the activity-cost pools for variable and fixed overhead costs. 2. Calculate the cost of unused capacity for the year. 4. 3. Calculate the total cost for each model, and the cost per unit for each model. Lang has the opportunity to sublease the unused factory space to a startup company that will be manufacturing surf apparel. None of Lang's machinery will be used. Is there a minimum annual rent that Lang should charge? Are there any other considerations that Lang's management should make prior to offering the space? Print - X Done G Data table Lang Boards Budgeted Costs for the Year Ended December 31, 2020 Direct materials-Basic boards Direct materials-Competition boards Direct manufacturing labor-Basic boards Direct manufacturing labor-Competition boards Machine setup costs Machine maintenance and utility costs Indirect labor costs Facility rent Machine depreciation Print Done $ 276,000 638,400 518,400 777,600 110,000 243,000 648,000 211,250 40,625 X Data table Other information: Units produced Machine hours Number of setups Direct labor-hours Print Basic 4,600 34,000 800 28,800 Done Competition 8,400 47,000 200 43,200 X