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The Current Designs staff has prepared the annual manufacturing budget for the rotomoulded line based on an estimated annual production of 4,200 kayaks during 2020

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The Current Designs staff has prepared the annual manufacturing budget for the rotomoulded line based on an estimated annual production of 4,200 kayaks during 2020 . Each kayak will require 74 kilograms of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.20 per kilogram, and the finishing kits cost $250 each. Each kayak will use two kinds of labour 2 hours of type I labour 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 employees are paid $15 per hour. Manufacturing overhead is budgeted at $419,200 for 2020 , broken down as follows. employees are paid $15 per hour. Manufacturing overhead is budgeted at $419,200 for 2020 , broken down as follows. During the first quarter, ended March 31, 2020, 1,100 units were actually produced with the following costs. Prepare the annual manufacturing budget for 2020, assuming that 4,200 kayaks will be produced. (List variable costs before fixed costs.)

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