The Current Designs staff has prepared the annual manufacturing budget for the rotomoulded line based on an estimated annual production of 4,680 kayaks during 2022 . Each kayak will require 78 kilograms of polyethylene powder and a finishing kit (rope, seat, hardware, etc). The polyethylene powder used in these kayaks costs $1.00 per kilogram, and the finishing kits cost $180 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 ll workers who attach the hatches and seat and other hardware. The type I employees are paid $10 per hour, and the type employees are paid $7 per hour. Manufacturing overhead is budgeted at $426,520 for 2022 , broken down as follows. During the first quarter, ended March 31, 2022, 1,220 units were actually produced with the following costs. During the first quarter, ended March 31,2022,1,220 units were actually produced with the following costs. 1