Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,120 kayaks during 2020. Each kayak will require 74 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.40 per pound, and the finishing kits cost $170 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 II workers who attach the hatches and seat and other hardware. The type I employees are paid $11 per hour, and the type II are paid $8 per hour. Manufacturing overhead is budgeted at $335,480 for 2020, broken down as follows. Variable costs Indirect materials $31,200 Manufacturing supplies 40,560 Maintenance and utilities 65,520 137,280 Fixed costs Supervision 72,000 Insurance 15,200 Depreciation 111,000 198,200 Total $335,480 During the first quarter, ended March 31, 2020, 830 units were actually produced with the following costs. Polyethylene powder Finishing kits Type I labor $87,618 141,410 18,260 Type II labor 21,100 Indirect materials 8,300