The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,000 kayaks during 2017. Each kayak will require 54 pounds ofpolyethylene powder and a finishing kit (rope, seat, hardware, etc.) The polyethylene powder used in these kayaks costs $1.50 per pound, and the finishing kit cost $165 each. Each kayak will use two kinds oflabor -2.5 hours oftypeI labor from people who run the oven and trim the plastic, and 3 hours ofwork from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $21 per hour, and the type II are paid $17 per hour. Manufacturing overhead is budgeted for 2017 as follows. Variable costs Indirect materials Manufacturing supplies Maintenance and utilities $40,000 53,800 88,000 Fixed costs Supervision Insurance 75,000 16,000 98,000 Total During the first quarter, ended March 31,2017, 1,050 units were actually produced with the following costs. Polyethylene powder Finishing kits Type I labor Type II labor Indirect materials Manufacturing supplies Maintenance and utilities $89,500 178,840 51,500 55,000 10.500 14,150 26,000 20,000 3,600 Insurance Total 473,890 (a) Prepare the annual manufacturing budget for 2017, assuming that 4,000 kayaks will be produced (b) Prepare the flexible budget for manufacturing for the quarter ended March 31,2017. Assume (c) Assuming the rotomolded line is treated as a profit center, prepare a flexible budget report for NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" activity levels of 800, 1,000 and 1,050 units. manufacturing for the quarter ended March 31,2017, when 1,050 units were produced