The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4.480 kayaks during 2020. Each kayak will require 50 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kits cost $190 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 II are paid $17 per hour. Manufacturing overhead is budgeted at $454,840 for 2020 , broken down as follows. During the first quarter, ended March 31,2020,1,170 units were actually produced with the following costs. CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 Budget Actual Neither Fave Favorable Unfavorable Actual Neither Favorable nor Unfavorable Difference $ $