Diane Buswell is preparing the 2022 budget for one of Current Designs rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2022.

Quarter 1		2,800	kayaks
Quarter 2		3,300	kayaks
Quarter 3		2,550	kayaks
Quarter 4		2,550	kayaks

Current Designs policy is to have finished goods ending inventory in a quarter equal to 25% of the next quarters anticipated sales. Preliminary sales projections for 2023 are 1,100 units for the first quarter and 3,300 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 700 rotomolded kayaks. Production of each kayak requires 44 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2021, is 20,400 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain a significant inventory of the finishing kits. The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kits cost $150 each. Production of a single kayak requires 4 hours of time by more experienced, type I employees and 5 hours of finishing time by type II employees. The type I employees are paid $17 per hour, and the type II employees are paid $14 per hour. Selling and administrative expenses for this line are expected to be $42 per unit sold plus $7,900 per quarter. Manufacturing overhead is assigned at 150% of labor costs.

(a). Prepare the production budget for this product line by quarter and in total for 2022.

(b) Prepare the direct materials budget for this product line by quarter and in total for 2022.

(c) Prepare the direct labor budget for this product line by quarter and in total for 2022.

(d) Prepare the manufacturing overhead budget for this product line by quarter and in total for 2022.

Expected Unit Sales Add Total Required Units Less Required Production Units : Desired Ending Finished Goods Unit : Beginning Finished Goods Unit Q1 2800 825 3625 700 2925 CURRENT DESIGNS Production Budget For the Year Ending December 31, 2022 Q2 3300 637.50 3937.50 825 3112.50 Q3 2550 637.50 3187.50 637.50 1912.50 Q4 2550 275 2825 637.50 1912.50 Total 11200 2375 13575 2800 9862.50 Prepare the direct materials budget for this product line by quarter and in total for 2022. (Round cost per pound to 2 decimal places, e.g. 1.25 and other answers to 0 decimal places, e.g. 125.) CURRENT DESIGNS Direct Materials Budget-Polyethylene Powder Quarter Q2 Q3 Q4 Units to be Produced Pounds of Polyethylene Powder Per Unit Total Pounds Needed for Production Add Mil Desired Ending Inventory of Powder $ Q1 $ $ $ $ $ $ $ Total Prepare the direct labor budget for this product line by quarter and in total for 2022. More skilled labor Q1 Less skilled labor $ $ $ $ $ $ $ $ CURRENT DESIGNS Direct labor Budget 02 $ $ $ Q3 $ $ $ $ Q4 $ $ $ $ TOTAL Expected Unit Sales Add Total Required Units Less Required Production Units : Desired Ending Finished Goods Unit : Beginning Finished Goods Unit Q1 2800 825 3625 700 2925 CURRENT DESIGNS Production Budget For the Year Ending December 31, 2022 Q2 3300 637.50 3937.50 825 3112.50 Q3 2550 637.50 3187.50 637.50 1912.50 Q4 2550 275 2825 637.50 1912.50 Total 11200 2375 13575 2800 9862.50 Prepare the direct materials budget for this product line by quarter and in total for 2022. (Round cost per pound to 2 decimal places, e.g. 1.25 and other answers to 0 decimal places, e.g. 125.) CURRENT DESIGNS Direct Materials Budget-Polyethylene Powder Quarter Q2 Q3 Q4 Units to be Produced Pounds of Polyethylene Powder Per Unit Total Pounds Needed for Production Add Mil Desired Ending Inventory of Powder $ Q1 $ $ $ $ $ $ $ Total Prepare the direct labor budget for this product line by quarter and in total for 2022. More skilled labor Q1 Less skilled labor $ $ $ $ $ $ $ $ CURRENT DESIGNS Direct labor Budget 02 $ $ $ Q3 $ $ $ $ Q4 $ $ $ $ TOTAL