Read the tequirements Data table Dexman's Netballs Budgeted Costs and Activities for the Year Ended December 31, 2020 Direct materials-basketballs 2$ 145,300 Direct materials-volleyballs 479,900 Direct manufacturing labor-basketballs 111,200 Direct manufacturing labor-volleyballs 95,600 Setup 126,000 Equipment and maintenance costs 96,600 255,000 Lease rent 24 1,309,600 Total Data table Other budget information follows: Basketballs Volleyballs Number of balls 57,000 110,000 Machine-hours 13,000 10,000 Number of setups 450 250 Square footage of production space used 3,500 10,100
Read the tequirements Data table Dexman's Netballs Budgeted Costs and Activities for the Year Ended December 31, 2020 Direct materials-basketballs 2$ 145,300 Direct materials-volleyballs 479,900 Direct manufacturing labor-basketballs 111,200 Direct manufacturing labor-volleyballs 95,600 Setup 126,000 Equipment and maintenance costs 96,600 255,000 Lease rent 24 1,309,600 Total Data table Other budget information follows: Basketballs Volleyballs Number of balls 57,000 110,000 Machine-hours 13,000 10,000 Number of setups 450 250 Square footage of production space used 3,500 10,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Dexman's Notballs 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 fot. Capacity of the facility is 17,000 square feet, and Dexman is using only 80% of
this capacity. Dexman records the cost of unused capacity as a separate line item and not as a product cost. The following is the budgeted information for Dexman
(Click the icon to view the budgeted information.)
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Read the tequirements
Data table
Dexman's Netballs
Budgeted Costs and Activities
for the Year Ended December 31, 2020
Direct materials-basketballs
2$
145,300
Direct materials-volleyballs
479,900
Direct manufacturing labor-basketballs
111,200
Direct manufacturing labor-volleyballs
95,600
Setup
126,000
Equipment and maintenance costs
96,600
255,000
Lease rent
2$
1,309,600
Total
Data table
Other budget information follows:
Basketballs
Volleyballs
Number of balls
57,000
110,000
Machine-hours
13,000
10,000
Number of setups
450
250
Square footage of production space used
3,500
10,100
1.
Calculate the budgeted cost per unit of cost driver for each indirect-cost
pool.
What is the budgeted cost of unused capacity?
2.
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