Please help me out with this question. I need the answers as soon as possible. Thank you SO much in advance!
Larman'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 10,000 square feet, and Larman is using only 60% of this capacity. Larman records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Larman: Click the icon to view the budgeted information.) F: (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 used: "equip." = equipment, "maint." = maintenance. For purposes of this requirement, ignore the cost of unused capacity in your computations.) Cost driver rate Setup = Equip. and Maint. = Lease rent, etc. = Requirement 2. What is the budgeted cost of unused capacity? Select the formula you will use, then calculate the cost of unused capacity. Cost of unused capacity 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 Volleyballs Total Direct materials Direct manufacturing labor Setup Equipment and maintenance Lease rent, etc. Budgeted total costs Number of units Budgeted cost per unit Requirement 4. Why might excess capacity be beneficial for Larman? What are some of the issues Larman should consider before increasing production to use the space? Why might excess capacity be beneficial for Larman? (Select all that apply.) A. The company could consider adding a new product line. B. Having excess capacity allows for the company to accept special orders if they are received. C. The excess capacity is costing Larman money and, therefore, cannot be beneficial to Larman. OD. The excess capacity could allow for expanded production of either of the existing models. What are some of the issues Larman should consider before increasing production to use the space? (Select all that apply.) A. The company should considering how much they could take in in rent if they opt to rent out the unused space. B. The company should consider if there is available labor and machine hours before increasing production to use the space. C. The company should consider the capital investment needed to start and support a new product line, as well as the demand for a new product. D. None of the above. OO - Data table Larman's Netballs Budgeted Costs and Activities for the Year Ended December 31, 2020 Direct materials-basketballs $ Direct materials-volleyballs Direct manufacturing labor-basketballs Direct manufacturing labor-volleyballs Setup Equipment and maintenance costs Lease rent $ Total 281,900 331,060 100,200 98,340 126,500 112,800 200,000 1,250,800 Data table Other budget information follows: Basketballs 64,000 11,000 Number of balls Machine-hours Number of setups Square footage of production space used Volleyballs 95,000 13,000 450 100 3,400 2,600
