b

The Sheffield staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,800 kayaks during 2020. Each kayak will require 50 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $210 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type ll workers who attach the hatches and seat and other hardware. The type I employees are paid $20 per hour, and the type Il are paid $17 per hour. Manufacturing overhead is budgeted at $439,000 for 2020, broken down as follows. Variable costs Indirect materials $57,600 Manufacturing supplies 62.400 Maintenance and utilities 115,200 235,200 Fixed costs Supervision 78,000 Insurance 14,400 Depreciation 111,400 203.800 Total $439,000 During the first quarter, ended March 31, 2020, 1,250 units were actually produced with the following costs Polyethylene powder $70,430 Finishing kits 262,750 Type I labor 50,000 Type Il labor 64,910 Indirect materials 15,000 Manufacturing supplies 16,298 Maintenance and utilities 32.650 Supervision 17,300 Insurance 3,600 Depreciation 27,350 Total $560,788 Prepare the annual manufacturing budget for 2020, assuming that 4,800 kayaks will be produced. (List variable costs before fixed costs) SHEFFIELD Rotomolded Line Manufacturing Budget For the Year Ended December 31, 2020 V V V $ DULU