The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,640 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 $1.00 per pound, and the finishing kits cost $220 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 $10 per hour, and the type II are paid $7 per hour. Manufacturing overhead is budgeted at $382,600 for 2022, broken down as follows. Variable costs Indirect materials $36,400 Manufacturing supplies 50,960 Maintenance and utilities 76,440 163,800 Fixed costs Supervision 94,000 Insurance 14.800 Depreciation 110,000 218,800 Total $382,600 During the first quarter, ended March 31, 2022, 960 units were actually produced with the following costs. Polyethylene powder $53,570 Finishing kits 211,530 Type I labor 19,200 Type Il labor 21,290 Indirect materials 9,600 Manufacturing supplies 13,479 Maintenance and utilities 22,640 Supervision 20,600 Insurance 3,700 Depreciation 27,500 Total $403,109 Prepare the annual manufacturing budget for 2022, assuming that 3,640 kayaks will be produced. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Budget For the Year Ended December 31, 2022 Units to be Produced 3640 Variable Costs Polyethylene Powder $ 196560 Finishing Kits 800800 Labor - Type 72800 Labor - Type II 76440 Indirect Materials 36400 Manufacturing Supplies 50960 Maintenance and Utilities 76440 Total Variable Costs 1310400 Fixed Costs Supervision 94000 Insurance 14800 Depreciation 110000 2002 Total Fixed Costs 218800 Total Costs $ 1529200 Prepare the flexible budget for manufacturing for the quarter ended March 31, 2022. Assume activity levels of 810, 910, and 960 units. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report Units to be produced 810 910 960 $ $ $ $ $ $ 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 960 units were produced. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report Budget Actual Neither > $ $ $ > > > $ $ 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 960 units were produced. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable t Actual $ $ > > IND $ $
