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 2022. Each kayak will require 68 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 $210each. 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 $421,000 for 2022, broken down as follows.

Variable costs
Indirect materials		$52,800
Manufacturing supplies		57,200
Maintenance and utilities		101,200
		211,200
Fixed costs
Supervision		86,000
Insurance		12,400
Depreciation		111,400
		209,800
Total		$421,000

During the first quarter, ended March 31, 2022, 1,150 units were actually produced with the following costs.

Polyethylene powder		$95,620
Finishing kits		241,820
Type I labor		41,400
Type II labor		53,000
Indirect materials		13,800
Manufacturing supplies		14,979
Maintenance and utilities		29,090
Supervision		19,500
Insurance		3,100
Depreciation		27,850
Total		$540,159

(a)

Prepare the annual manufacturing budget for 2022, assuming that 4,400 kayaks will be produced. (List variable costs before fixed costs.)