:: . 3!'H. |||"Normal!TNoSpaci Heading 1 Heading 2 Nomal Replace Change A seled Title -1 Change Font Paragraph Styles OPERATING BUDGETS Diane Buswellis preparing the 2017 budget for one of Current Design's rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2017 1,000 kayaks 1,500 kayaks 750 kayaks 750 kayaks The selling price per kayak is $950 in the first three quarters Quarter 1 Quarter 2 Quarter 3 Quarter 4 with a price reduction to $850 in the 4th quarter. Current Designs' policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2018 are 1,100 units for the first quarter and 1,500 units for the second quarter. Ending Tinventory of finished goods at December 31, 2016, will be 200 rotomolded kayaks. Production of each kayak requires 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 2S% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2016 is 19,400 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain a significant inventory of the finished kits. The polyethylene powder used in these kayaks cost $1.50 per pound, and the finishing kits cost $170 each. Production of a single kayak requires 2 hours of time by more experienced, type l employees and 3 hours of finishing time by type I employees The type I employees are paid $15 per hour, and the type ll employees are paid $12 per hour Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7,500 foxed per quarter. Manufacturing overhead is assigned at 150% of labor costs. Instructions Prepare the sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, and selling and Then prepare a budgeted income statement administrative budget for this product line by quarter and in total for 2017