Question: Q . 1 ) ( 5 0 points ) Nivag's Netballs is a manufacturer of high quality basketballs and volleyballs. Setup costs are driven by

Q.1)(50 points) Nivag'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 12,000 square feet and Nivag is using only 70% of this capacity. Nivag records the cost of unused capacity as a separate line item, and not as a product cost. The following is the budgeted information for Nivag:
Nivag's Netballs Budgeted Costs and Activities
For the Year Ended August 31,2012
\table[[Direct materials_-basketballs,$209,750
 Q.1)(50 points) Nivag's Netballs is a manufacturer of high quality basketballs

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