Laura Hall is preparing the 2022 budget for one of Current Designs' rotomoulded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2022. Quarter 1 1,900 kayaks Quarter 2 2,200 kayaks Quarter 3 1,750 kayaks Quarter 4 1,750 kayaks Current Designs' policy is to have finished goods ending inventory in a quarter equal to 30% of the next quarter's anticipated sales. Preliminary sales projections for 2023 are 1,100 units for the first quarter and 2,200 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 570 rotomoulded kayaks. Production of each kayak requires 60 kg of polyethylene powder and a finishing kit (rope, seat, hardware, etc). Company policy is that the ending inventory of polyethylene powder should be 20% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2021, is 19,000 kg. 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 $1.30 per kilogram, and the finishing kits cost $180 each. Production of a single kayak requires 2 hours of time by more experienced, type l employees and 3 hours of finishing time by type II employees. The type employees are paid $16 per hour, and the type II employees are paid $13 per hour. Selling and administrative expenses for this line are expected to be $42 per unit sold plus $6,800 per quarter. Manufacturing overhead is assigned at 140% of labour costs. Prepare the production budget for this product line by quarter and in total for 2022. CURRENT DESIGNS Production Budget For the Year Ending December 31, 2022 Q1 Q2 Q3 Prepare the direct materials budget for this product line by quarter and in total for 2022. (Round cost per kg to 2 decimal places, e.g, 12.25 and other answers to 0 decimal places, e.g. 125.) CURRENT DESIGNS Direct Materials Budget--Polyethylene Powder For the Year Ending December 31, 2022 Quarter 21 Q2 a $ $ $ Prepare the direct labour budget for this product line by quarter and in total for 2022. CURRENT DESIGNS Direct Labour Budget For the Year Ending Dec 31, 2022 More skilled labour Q1 Q2 Q3 $ $ $ $ $ Less skilled labour Q1 Q2 Q3 Prepare the manufacturing overhead budget for this product line by quarter and in total for 2022. CURRENT DESIGNS Manufacturing Overhead Budget For the Year Ending Dec 31, 2022 Q1 Q2 Q3
