The Bonita staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,880 kayaks during 2020. Each kayak will require 68 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.30 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor2 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 $17 per hour, and the type II are paid $14 per hour. Manufacturing overhead is budgeted at $425,880 for 2020, broken down as follows.

Variable costs
Indirect materials		$53,680
Manufacturing supplies		73,200
Maintenance and utilities		97,600
		224,480
Fixed costs
Supervision		78,000
Insurance		14,800
Depreciation		108,600
		201,400
Total		$425,880

During the first quarter, ended March 31, 2020, 1,270 units were actually produced with the following costs.

Polyethylene powder		$114,068
Finishing kits		317,750
Type I labor		43,180
Type II labor		54,530
Indirect materials		13,970
Manufacturing supplies		19,076
Maintenance and utilities		28,270
Supervision		17,100
Insurance		3,700
Depreciation		27,150
Total		$638,794

(a)

Prepare the annual manufacturing budget for 2020, assuming that 4,880 kayaks will be produced. (List variable costs before fixed costs.)

BONITA Rotomolded Line Manufacturing Budget For the Year Ended December 31, 2020
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs		$
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs		$
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs		$