The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,640 kayaks during 2022. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.40 per pound, and the finishing kits cost $160 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 Il workers who attach the hatches and seat and other hardware. The type I employees are paid $12 per hour, and the type Il are paid $9 per hour. Manufacturing overhead is budgeted at $421,960 for 2022, broken down as follows. Variable costs Indirect materials $51,040 Manufacturing supplies 64,960 Maintenance and utilities 111,360 227,360 Fixed costs Supervision 72,000 Insurance 12,000 Depreciation 110,600 Depreciation 110,600 194,600 Total $421,960 During the first quarter, ended March 31, 2022, 1,210 units were actually produced with the following costs. Polyethylene powder $93,476 Finishing kits 193,960 Type I labor 29,040 Type Il labor 33,940 Indirect materials 13,310 Manufacturing supplies 16,988 Maintenance and utilities 31,680 Supervision 15,000 Insurance 3,000 Depreciation 27,650 Total $458,044 (a) Prepare the annual manufacturing budget for 2022, assuming that 4,640 kayaks will be produced. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Budget For the Year Ended December 31, 2022 (b). Prepare the flexible budget for manufacturing for the quarter ended March 31, 2022. Assume activity levels of 1,060, 1,160, and 1,210 units. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report V Units to be produced 1,060 1,160 1,210 $ $ Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2022, when 1,210 units were produced. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfa Budget Actual $ $ $