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 of polyethylene 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 $170 each. Each kayak will use two kinds of labor 2 hours of type l labor 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 l employees are paid $15 per hour, and the typellare paid $12 per hour. Manufacturing overhead is budgeted at $386,000 for 2017, as follows. Variable costs $40,000 Indirect materials 53,800 Manufacturing supplies 88.000 Maintenance and utilities 181,800 Fixed costs 80,000 Supervision 14,400 Insurance 109,800 Depreciation 204.200