question 12

The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4.840 kayaks during 2022. Each kayak will require 72 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 $180 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 l employees are paid $20 per hour, and the type Il are paid $17 per hour. Manufacturing overhead is budgeted at $426,920 for 2022, broken down as follows. Variable costs Indirect materials Manufacturing supplies $48,400 67.760 Maintenance and utilities 116,160 232,320 Fixed costs Supervision 72.000 Insurance 12.000 Depreciation 110.600 194.600 Total $426,920 During the first quarter, ended March 31, 2022. 1.260 units were actually produced with the following costs. $92,350 227,050 50,400 65,390 Polyethylene powder Finishing kits Type I labor Type Il labor Indirect materials Manufacturing supplies Maintenance and utilities Supervision Insurance 12,600 17,682 32.930 15,500 3,000 Depreciation 27,650 Total $544,552 Prepare the annual manufacturing budget for 2022, assuming that 4,840 kayaks will be produced. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Budget $ S $ (c) Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2022, when 1.260 units were produced. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report Budget Actual Neiti $ $ $ $ (c) Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2022, when 1.260 units were produced. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable dget Actual $ $ >