The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,120 kayaks during 2022. Each kayak will require 74 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 $170 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 $11 per hour, and the type II are paid $8 per hour. Manufacturing overhead is budgeted at $335,480 for 2022, broken down as follows.

Variable costs
Indirect materials		$31,200
Manufacturing supplies		40,560
Maintenance and utilities		65,520
		137,280
Fixed costs
Supervision		72,000
Insurance		15,200
Depreciation		111,000
		198,200
Total		$335,480

During the first quarter, ended March 31, 2022, 830 units were actually produced with the following costs.

Polyethylene powder		$87,618
Finishing kits		141,410
Type I labor		18,260
Type II labor		21,100
Indirect materials		8,300
Manufacturing supplies		10,826
Maintenance and utilities		20,200
Supervision		15,400
Insurance		3,800
Depreciation		27,750
Total		$354,664

b. Prepare the flexible budget for manufacturing for the quarter ended March 31, 2022. Assume activity levels of 680, 780, and 830 units. (List variable costs before fixed costs.)

c. 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 830 units were produced. (List variable costs before fixed costs.)