'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 17 comma 000 square feet, and Brinkal is using only 80 % of this capacity. Brinkal records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Brinkal :

1.	Calculate the budgeted cost per unit of cost driver for each indirect cost pool.
2.	What is the budgeted cost of unused capacity?
3.	What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs?
4.	Why might excess capacity be beneficial for Brinkal? what are some of the issues Brinkal should consider before increasing production to use the space?

Brinkal's Netballs, Budgeted Costs and Activities, "For the Year Ended December 31, 2014", Direct materialsbasketballs,"$267,920" Direct materialsvolleyballs,"558,780" Direct manufacturing laborbasketballs,"111,200" Direct manufacturing laborvolleyballs,"95,600" Setup,"60,000" Equipment and maintenance costs,"93,100" Lease rent,"238,000" Total,"$1,424,600"

Basketballs,Volleyballs Number of balls, "58,000","130,000" Machine-hours, "12,000","12,500" Number of batches, 150,250 Square footage of production space used,"3,270","10,330"