production of 3,960 kayaks during 2022. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat. hardware, etc.). The polyethylene powder used in these kayaks costs $1.00 per pound, and the finishing kits cost $150 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 $19 per hour, and the type II are paid $16 per hour. Manufacturing overhead is budgeted at $381,520 for 2022, broken down as follows. Variable costs Indirect materials $39,600 Manufacturing supplies 55,440 Maintenance and utilities. 91,080 186,120 Fixed costs Supervision 74,000 Insurance 13,200 Depreciation 108,200 195,400 Total $381,520 During the first quarter, ended March 31, 2022, 1,040 units were actually produced with the following costs. Polyethylene powder $59,900 Finishing kits 156,370 Type I labor 39,520 Type II labor 51,080 Indirect materials 10,400 Manufacturing supplies 14,604 Maintenance and utilities 26,830 Supervision 16,400 Insurance 3,300 Depreciation 27,050 Total $405,454 Prepare the flexible budget for manufacturing for the quarter ended March 31, 2022. Assume activity levels of 890, 990, and 1,040 units. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report $ Units to be Produced 890 990 1,040 S $ $