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 2022. 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 I employees are paid $20 per hour, and the type II are paid $17 per hour. Manufacturing overhead is budgeted at $454,840 for 2022, broken down as follows. Variable costs Indirect materials $53,760 Manufacturing supplies 67,200 Maintenance and utilities 116,480 237,440 Fixed costs Supervision 92,000 Insurance 15,600 Depreciation 109,800 217,400 Total $454,840