CD24 Current Designs The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,000 kayaks during 2017. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.) The polyethylene powder used in these kayaks costs S1.50 per pound, and the finishing kit cost S170 each Each kayak will use two kinds of labor 2 hours of type l abor 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 l employees are paid S15 per hour, and the type are paid S12 per hour Manufacturing overhead is budgeted at S336,000 for 2017, as follows Variable costs Indirect materials S40,000 Manufacturing supplies 53,800 Maintenance and utilities 88,000 181,800 Fixed costs Supervision 80,000 Insurance 4,400 Depreciation 109,800 204,200 Total $386,000 During the first quarter, ended March 31, 2017, 1,050 units were actually produced with the following costs. Polyethylene powder 89,500 Finishing kits 178.840 Type labor 31,500 Type ll abor 39,060 Indirect materials 10,500 Manufacturing supplies 14,150 Maintenance and utilities 26,000 Supervision 20,000 Insurance 3,600 Depreciation 27,450 Total S440,600 Instructions (a) Prepare the annual manufacturing budget for 2017, assuming that 4,000 kayaks will be produced (b) Prepare the flexible budget for manufacturing for the quarter ended March 31, 2017. Assume activity levels of 800, 1,000 and 1,050 units (c) Assuming the rotomolded line is treated as a profit center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2017, when 1,050 units were produced. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a