The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,680 kayaks during 2020. Each kayak will require 78 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 $180 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 $10 per hour, and the type II are paid $7 per hour.

Manufacturing overhead is budgeted at $426,520 for 2020, broken down as follows.

Variable costs
Indirect materials		$51,480
Manufacturing supplies		70,200
Maintenance and utilities		107,640
		229,320
Fixed costs
Supervision		74,000
Insurance		12,000
Depreciation		111,200
		197,200
Total		$426,520

During the first quarter, ended March 31, 2020, 1,220 units were actually produced with the following costs.

Polyethylene powder		$97,030
Finishing kits		219,900
Type I labor		24,400
Type II labor		26,810
Indirect materials		13,420
Manufacturing supplies		18,337
Maintenance and utilities		30,520
Supervision		15,500
Insurance		3,000
Depreciation		27,800
Total		$476,717

Question 2 of 4 Prepare the annual manufacturing budget for 2020, assuming that 4, 680 layaks will be produced. (Listva costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Budget For the Year Ended December 31, 2020 $