Wybock'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 15,000 square feet, and Wybock is using only 60% of this capacity. Wybock records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Wybock:

Wybock's Netballs
Budgeted Costs and Activities
For the Year Ended December 31, 2017
Direct material-basketballs	$ 220,660
Direct material-volleyballs	223,290
Direct manufacturing labor-basketballs	110,600
Direct manufacturing labor-volleyballs	110,250
Setup	115,500
Equipment and maintenance costs	96,600
Lease rent	180,000
Total	1,056,900

Other budget information follows:
	Basketballs	Volleyballs
Number of balls	58,000	75,000
Machine-hours	12,000	11,000
Number of setups	150	400
Square footage of production space used	3,270	5,730

Question:

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 Wybock? What are some of the issues Wybock should consider before increasing production to use the space?