Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,400 kayaks during 2020. Each kayak will require 50 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.00 per pound, and the finishing kits cost $240 each. Each kayak will use two kinds of labor-2 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 $18 per hour, and the type II are paid $15 per hour. Manufacturing overhead is budgeted at $406,400 for 2020, broken down as follows. Variable costs Manufacturing supplies Indirect materials $52,800 66,000 Maintenance and utilities 88,000 206,800 Fixed costs Supervision 76,000 Insurance 14,000 Depreciation 111,600 Total 201,600 $408,400 During the first quarter, ended March 31, 2020, 1,150 units were actually produced with the following costs. Polyethylene powder Finishing kits $59,290 276,260 Type I labor 41,400 Type II labor 53,010 Indirect materials 13,800