Prector'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 11,000 square feet, and Prector is using only 60% of this capacity. Prector records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Prector:

Prector's Netballs

Budgeted Costs and Activities

for the Year Ended December 31, 2020

Direct materialsbasketballs $139,450

Direct materialsvolleyballs. $670,800

Direct manufacturing laborbasketballs $110,600

Direct manufacturing laborvolleyballs $97,150

Setup $189,000

Equipment and maintenance costs $114,800

Lease rent $220,000

Total $1,541,800

Other budget information follows:

	Basketballs	Volleyballs
Number of balls	63,000	130,000
Machine-hours	13,500	14,500
Number of setups	600	450
Square footage of production space used	3,270	3,330

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

=

per setup

Equip. and Maint.

=

per machine hour

Lease rent, etc.

=

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
			=

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
Direct manufacturing labor
Setup
Equipment and maintenance
Lease rent, etc.
Budgeted total costs

Volleyballs

Total

Number of units
Budgeted cost per unit