The Oriole staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,640 kayaks during 2020. 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 $1.40 per pound, and the finishing kits cost $160 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 $12 per hour, and the type II are paid $9 per hour. Manufacturing overhead is budgeted at $421,960 for 2020, broken down as follows.

Variable costs
Indirect materials		$51,040
Manufacturing supplies		64,960
Maintenance and utilities		111,360
		227,360
Fixed costs
Supervision		72,000
Insurance		12,000
Depreciation		110,600
		194,600
Total		$421,960

During the first quarter, ended March 31, 2020, 1,210 units were actually produced with the following costs.

Polyethylene powder		$93,476
Finishing kits		193,960
Type I labor		29,040
Type II labor		33,940
Indirect materials		13,310
Manufacturing supplies		16,988
Maintenance and utilities		31,680
Supervision		15,000
Insurance		3,000
Depreciation		27,650
Total		$458,044

(a)

Prepare the annual manufacturing budget for 2020, assuming that 4,640 kayaks will be produced. (List variable costs before fixed costs.)

ORIOLE Rotomolded Line Manufacturing Budget For the Year Ended December 31, 2020 $ $