Zarson'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 18,000 square feet, and Zarson is using only 60% of this capacity. Zarson records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Zarson: (Click the icon to view the budgeted information.) (Click the icon to view other information.) Read the requirements. Requirements - Data table Data table Zarson's Netballs 1. Calculate the budgeted cost per unit of cost driver for each indirect-cost pool. Other budget information follows: Budgeted Costs and Activities Basketballs Volleyballs 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? Number of balls 58,000 85,000 Machine-hours 10,000 14,500 4. Why might excess capacity be beneficial for Zarson? What are some of the issues Zarson should consider before increasing production to use the space? Number of setups 100 250 for the Year Ended December 31, 2020 $ Direct materials-basketballs Direct materials-volleyballs 255,600 242,050 Square footage of production space used 3,500 7,300 Direct manufacturing labor-basketballs Direct manufacturing labor-volleyballs Setup 98,500 95,600 59,500 Equipment and maintenance costs 110,250 Print Done Print Done 306,000 Lease rent $ 1,167,500 Total Print Done