Richard Fiesel is preparing the 2023 budget for ACE Kayaks. Extensive meetings with members of the sales department and executive management team have resulted in the following unit sales projections for 2023. ACE's policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2024 are 1,100 units for the first quarter and 1,500 units for the second quarter. Ending inventory of finished goods at December 31,2022, will be 200 kayaks. Production of each kayak requires 54 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 , 2022 , is 19,500 pounds. The finishing kits can be assembled as they are needed. As a result, ACE does not maintain a significant inventory of the finishing kits. The polyethylene powder used in these kayaks costs $1.55 per pound, and the finishing kits cost $150 each. Production of a single kayak requires 3 hours of time by more experienced, type I employees and 4 hours of finishing time by type II employees. The type I employees are paid $30 per hour, and the type II employees are paid $15 per hour. Selling and administrative expenses for this line are expected to be $50 per unit sold plus $7,500 per quarter. Manufacturing overhead is assigned at 150% of labor costs. Chapter 22: Using Excel to Make Decisions at Current Designs \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|l|}{ Data } \\ \hline \multicolumn{6}{|l|}{ Budgeted unit sales } \\ \hline & Quarter 1, 2023 & & 1,250 & & \\ \hline & Quarter 2, 2023 & & 1,500 & & \\ \hline & Quarter 3, 2023 & & 750 & & \\ \hline & Quarter 4, 2023 & & 700 & & \\ \hline & Quarter 1, 2024 & & 1,100 & & \\ \hline & Quarter 2, 2024 & & 1,500 & & \\ \hline \multicolumn{2}{|c|}{ Desired finished goods ending inventory } & & 20% & \multicolumn{2}{|c|}{ of next month's sales } \\ \hline \multicolumn{2}{|c|}{ Desired ending inventory of polyethylene powder } & & 25% & \multicolumn{2}{|c|}{ of next month's production } \\ \hline \multirow{2}{*}{\multicolumn{6}{|c|}{ Estimated inventories }} \\ \hline & & & & & \\ \hline & Finished goods inventory at Dec. 31,2022 & & 200 & \multirow{2}{*}{\begin{tabular}{l} kayaks \\ pounds \end{tabular}} & \\ \hline & Polyethylene powder at Dec. 31, 2022 & & 19,500 & & \\ \hline \multicolumn{6}{|l|}{ Production requirements } \\ \hline & Polyethylene powder & & 54 & pounds & \\ \hline & Finishing kit & & 1 & kit & \\ \hline & Type I employees labor time & & 3 & hours & \\ \hline & Type II employees labor time & & 4 & hours & \\ \hline & Manufacturing overhead & & 150% & \multicolumn{2}{|c|}{ of direct labor costs } \\ \hline Cost of polyethylene powder & & $ & 1.55 & per pound & \\ \hline Cost of finishing kits & & $ & 150.00 & per kit & \\ \hline Labor rate of type I employees & & $ & 30.00 & per hour & \\ \hline Labor rate of type II employees & & $ & 15.00 & per hour & \\ \hline \multicolumn{2}{|l|}{ Selling and administrative expenses } & $ & 50.00 & \multicolumn{2}{|l|}{ per unit sold } \\ \hline \multicolumn{2}{|l|}{ Selling and administrative expenses } & $ & 7,500 & per quarter & \\ \hline \end{tabular} Required Follow the step-by-step directions (in Word document) to prepare selected budgets for ACE Kayaks (see word document in assignment) CUSTOM DESIGNS Sales Budget For the Year Ending December 31, 2023 J51 P Total required units to have on hand Less: Beginning finished goods units (what we'll already have) Required production units CUSTOM DESIGNS Direct Materials Budget For the Year Ending December 31, 2023 J51 Iotal cost for direct labor in type II (total number of hours x rate per hour) Total cost for direct labor (type I total + type II total) CUSTOM DESIGNS Manufacturing Overhead Budget For the Year Ending December 31, 2023 CUSTOM DESIGNS Selling and Administrative Expense Budget For the Year Ending December 31, 2023 Expected unit sales (see projections) \begin{tabular}{llllll} Quarter 1 & Quarter 2 & Quarter 3 & Quarter 4 & Total \\ & & & \end{tabular} Variable selling and administrative cost per unit Total variable selling and administrative cost (unit sales x var. cost per unit) Fixed selling and administrative costs Total selling and administrative costs (variable + fixed)