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 $50$ pounds of

polyethylene powder and a finishing kit $($rope$,$ seat, hardware, etc.$).$ The polyethylene powder used in these

kayaks costs $$1\mathrm{.}00$ per pound, and the finishing kits cost $$240$ 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 $$18$ per

hour, and the type II are paid $$15$ per hour.

Manufacturing overhead is budgeted at $$408,400$ for $2022,$ 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 $31,2022,1,150$ units were actually produced with the following

costs.

Polyethylene powder $$59,290$

Chapter $10$ Homework

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$($a$)$

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$