Sharp Boards manufactures two models of surfboards, Basic and Competition, in a facility in Southern California. In fabrication, machine setup costs are driven by the number of setups, machine maintenance and utility costs increase with the number of machine hours, and indirect labor costs increase with direct labor hours. Facility rent and machine depreciation are fixed, and are the basis of manufacturing capacity. Fixed costs are allocated equally to each unit produced, regardless of model. Currently, Sharp uses 60% of its manufacturing capacity. The cost of unused capacity is not assigned to products, but is expensed as a separate line item. For 2020 , Sharp has budgeted the following: (Click the icon to view the budgeted information.) (Click the icon to view other information.) Read the Requirement 1. Calculate the cost-allocation rate for each of the activity-cost pools for variable and fixed overhead costs. Select the formula you will use, then calculate the cost driver rate. (Round the cost driver rates to the nearest cent, \$X.XX. "Machine maint \&. util" = "Machine maintenance and utility costs". When calculating the cost driver rates for facility rent and depreciation, use a numerator that accounts for the fact that Sharp uses only 60% of its manufacturing capacity.) Data table Data table Requirements 1. Calculate the cost-allocation rate for each of the activity-cost pools for variable and fixed overhead costs. 2. Calculate the cost of unused capacity for the year. 3. Calculate the total cost for each model, and the cost per unit for each model. 4. Sharp has the opportunity to sublease the unused factory space to a startup company that will be manufacturing surf apparel. None of Sharp's machinery will be used. Is there a minimum annual rent that Sharp should charge? Are there any other considerations that Sharp's management should make prior to offering the space? Sharp Boards manufactures two models of surfboards, Basic and Competition, in a facility in Southern California. In fabrication, machine setup costs are driven by the number of setups, machine maintenance and utility costs increase with the number of machine hours, and indirect labor costs increase with direct labor hours. Facility rent and machine depreciation are fixed, and are the basis of manufacturing capacity. Fixed costs are allocated equally to each unit produced, regardless of model. Currently, Sharp uses 60% of its manufacturing capacity. The cost of unused capacity is not assigned to products, but is expensed as a separate line item. For 2020 , Sharp has budgeted the following: (Click the icon to view the budgeted information.) (Click the icon to view other information.) Read the Requirement 1. Calculate the cost-allocation rate for each of the activity-cost pools for variable and fixed overhead costs. Select the formula you will use, then calculate the cost driver rate. (Round the cost driver rates to the nearest cent, \$X.XX. "Machine maint \&. util" = "Machine maintenance and utility costs". When calculating the cost driver rates for facility rent and depreciation, use a numerator that accounts for the fact that Sharp uses only 60% of its manufacturing capacity.) Data table Data table Requirements 1. Calculate the cost-allocation rate for each of the activity-cost pools for variable and fixed overhead costs. 2. Calculate the cost of unused capacity for the year. 3. Calculate the total cost for each model, and the cost per unit for each model. 4. Sharp has the opportunity to sublease the unused factory space to a startup company that will be manufacturing surf apparel. None of Sharp's machinery will be used. Is there a minimum annual rent that Sharp should charge? Are there any other considerations that Sharp's management should make prior to offering the space
