Nivag's Netballs is a manufacturer of high quality basketballs and volleyballs. It uses activity based costing (ABC) system. Tree indirect cost categories (activities) and their cost drivers are as follows: Setup costs are driven by the number of batches. - Equipment and maintenance costs increase with the number of machine-hours. Rent is paid per square meter (m). Capacity of the facility is 8,400 m. The following is the budgeted direct cost and indirect cost information for Nivag: Direct materials Direct manufacturing labor Setup cost Direct Costs Basketballs Volleyballs $209,750 107,333 $ 358,290 102,969 Indirect Costs $ 143,500 109,900 151,200 Equipment and maintenance costs Rent Other budgeted information follows. Basketballs Volleyballs Number of balls 66,000 100,000 Machine hours 11,000 12,500 Number of batches 300 400 Area of production space used (m) 3,360 5,040 (For each item below select from the drop-down list.) a) What is the budgeted setup cost allocation rate (setup cost per batch)? Ans. = $ b) How much of the rent costs are allocated to basketballs? Ans. S c) What is the budgeted total cost of producing basketballs? Ans. = $