Q$\mathrm{.}1)(50$ points$)$ Nivag's Netballs is a manufacturer of high quality basketballs and volleyballs. Setup costs are driven by the number of batches. Equipment and maintenance costs increase with the number of machine$-$hours, and lease rent is paid per square foot. Capacity of the facility is $12,000$ square feet and Nivag is using only $70\%$ of this capacity. Nivag records the cost of unused capacity as a separate line item, and not as a product cost. The following is the budgeted information for Nivag:

Nivag's Netballs Budgeted Costs and Activities

For the Year Ended August $31,2012$

$\backslash$table$[[$Direct materials$\_-$basketballs,$$209,750$