The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,400 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 $1.00 per pound, and the finishing kits cost $240 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 $18 per hour, and the type II are paid $15 per hour. Manufacturing overhead is budgeted at $408,400 for 2020, broken down as follows.

Variable costs
Indirect materials		$52,800
Manufacturing supplies		66,000
Maintenance and utilities		88,000
		206,800
Fixed costs
Supervision		76,000
Insurance		14,000
Depreciation		111,600
		201,600
Total		$408,400

During the first quarter, ended March 31, 2020, 1,150 units were actually produced with the following costs.

Polyethylene powder		$59,290
Finishing kits		276,260
Type I labor		41,400
Type II labor		53,010
Indirect materials		13,800
Manufacturing supplies		17,297
Maintenance and utilities		25,720
Supervision		17,200
Insurance		3,500
Depreciation		27,900
Total		$535,377

Prepare the annual manufacturing budget for 2020, assuming that 4,400 kayaks will be produced. (List variable costs before fixed costs.)

CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020
Units to be Produced		1,000		1,100		1,150

Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2020, when 1,150 units were produced. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.)

CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020
		Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable Difference
DepreciationFinishing KitsFixed CostsIndirect MaterialsInsuranceLabor - Type ILabor - Type IIMaintenance and UtilitiesManufacturing SuppliesPolyethylene PowderSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits to be ProducedVariable Costs