**Budget and Cost Analysis for Rotomolded Kayak Production**The Current Designs team has developed the annual manufacturing budget for their rotomolded line, projecting an output of 3,960 kayaks in 2020. Each kayak production requires 56 pounds of polyethylene powder and a finishing kit including components such as rope, seat, and hardware. The polyethylene powder is priced at $1.00 per pound, while each finishing kit costs $150.### Labor RequirementsThe production involves two types of labor:- **Type I**: 2 hours per kayak for oven operation and plastic trimming, paid $19 per hour.- **Type II**: 3 hours per kayak for attaching hatches and hardware, paid $16 per hour.### Manufacturing Overhead BudgetTotal overhead for 2020 is estimated at $381,520, detailed as follows:#### Variable Costs- **Indirect Materials**: $39,600- **Manufacturing Supplies**: $55,440- **Maintenance and Utilities**: $91,080- **Total Variable Costs**: $186,120#### Fixed Costs- **Supervision**: $74,000- **Insurance**: $13,200- **Depreciation**: $108,200- **Total Fixed Costs**: $195,400**Overall Total**: $381,520### First Quarter Production CostsDuring the first quarter ending March 31, 2020, 1,040 units were produced with the following costs:- **Polyethylene Powder**: $59,900- **Finishing Kits**: $156,370- **Type I Labor**: $39,520- **Type II Labor**: $51,080- **Indirect Materials**: $10,400- **Manufacturing Supplies**: $14,604- **Maintenance and Utilities**: $26,830- **Supervision**: $16,400- **Insurance**: $3,300- **Depreciation**: $27,050**Total Cost for Quarter**: $405,454These figures provide a detailed picture of both the projected and actual financial requirements for kayak production, helping in planning and efficiency analysis. **Flexible Budget Report for Manufacturing***Objective*: Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2020, when 1,040 units were produced.**Instructions**:- List variable costs before fixed costs.- Round answers to 0 decimal places, e.g., 125.**Report Title**:CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020**Budget vs. Actual Analysis**:- This report allows for a detailed comparison of the budgeted and actual expenses involved in rotomolded line manufacturing.- The columns are divided into "Budget" and "Actual" amounts for various cost categories.**Cost Categories (dropdown options)**:1. Depreciation2. Finishing Kits3. Fixed Costs4. Indirect Materials5. Insurance6. Labor - Type I7. Labor - Type II8. Maintenance and Utilities9. Manufacturing Supplies10. Polyethylene Powder11. Supervision12. Total Costs13. Total Fixed Costs14. Total Variable Costs15. Units to be Produced16. Variable CostsEach row allows the user to input the relevant costs in the corresponding categories under both the "Budget" and "Actual" columns.**Interactive Elements**:- Dropdown menus are provided for selecting the specific cost categories.- Users can enter numerical values in the provided text fields to represent financial amounts.**Submission**:- Users have two attempts to submit their answers via the "Submit Answer" button located at the bottom of the form.

A flexible budget is a budget prepared by the management that compares the estimated and actual…

The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,960 kayaks during 2020. Each kayak will require 56 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 $150 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 $19 per hour, and the type II are paid $16 per hour. Manufacturing overhead is budgeted at $381,520 for 2020, broken down as follows. Variable costs Indirect materials Manufacturing supplies Maintenance and utilities Fixed costs Supervision Insurance Depreciation Total Polyethylene powder Finishing kits Type I labor Type II labor Indirect materials Manufacturing supplies Maintenance and utilities Supervision Insurance Depreciation $39,600 55,440 Total 91,080 186,120 During the first quarter, ended March 31, 2020, 1,040 units were actually produced with the following costs. 74,000 13,200 108,200 195,400 $381,520 $59,900 156,370 39,520 51,080 10,400 14,604 26,830 16,400 3,300 27,050 $405,454

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q