Dune Bowell is preparing the 2022 budget for one of Current Designs rotomolded kayaks Extensive meetings w sales department and executive team have resulted in the following unit sales projections for 2022 Quarter 1 2.600 kayaks Quarter 2 3.000 kayaka Quarter 3 Quarter 4 2400 kayaks 2,400 kayaks Current Devere policy is to have treshed goods ending inventory in a quarter equal to 30% of the next quarter's anticipated sales. Preliminary sales projections for 2023 are 1,300 units for the first quarter and 3,000 unes for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 780 rotomolded kayaks Production of each lovak requires 50 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 duarter Assume that the ending inventory of polyethylene powder on December 31, 2021. 22.000 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain sipsficant inventory of the frishing kits The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kots cost $100 each Production of a single kayakoregues 5 hours of time by more experienced type temployees and 6 hours of finishing type ll employees. The type 1 employees are paid $10 per hour and the type il employees are paid $15 per hour Selling and admistrative expenses for the line are expected to be $45 per unit cold plus $7.500 per quarter Manufacturing overhead is assigned at 140c of labor costs