Sundazzler Designs has prepared the annual manufacturing budget for its line of specialty pergolas. It estimated annual production of 3,000 pergolas during 2022. Each pergola will require 54 pounds of lumber and a metal kit (attachments and decorative embellishments.). The lumber used in these pergolas costs $1.50 per pound, and the metal kits cost $170 each. Each pergola will use two kinds of labor2 hours of type I labor from people who run the cutting saws and finishing tools, and 3 hours of work from type II workers who attach the metal reinforcements and other hardware. The type I employees are paid $15 per hour, and the type II are paid $12 per hour.

Annual amounts Manufacturing overhead is budgeted at $340,550 for the year 2022, broken down as follows.

Variable costs
Indirect materials	$30,000
Manufacturing supplies	40,350
Maintenance and utilities	66,000
Total variable MOH:	136,350
Fixed costs
Supervision	80,000
Insurance	14,400
Depreciation	109,800
Total fixed MOH:	204,200
Total	$340,550

1. Prepare the annual manufacturing budget for 2022, assuming that 3,000 pergolas will be produced.

   	Sundazzler Inc.
   	Pergola Division
   Manufacturing Budget for the year 2022
   Costs:
   Variable costs
   Lumber
   Metal kits
   Labortype I
   Labortype II
   Indirect materials
   Manufacturing supplies
   Maintenance and utilities
   Total variable costs
   Fixed costs
   Supervision
   Insurance
   Depreciation
   Total fixed costs
   Total costs