Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2022, when 1,210 units were produced. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2022 Units to be Produced Varlable Costs Polyethylene Powder Finishing Kits Budget 69 1210 -81928 254100 Actual 1210 Difference Favorable Unfavorable Neither Favorable nor 149 $ 82912 $ 254360 Labor - Type I 41140 41140 Labor - Type II -52140 52120 Indirect Materials Manufacturing Supplies 12100 12100 16940 16968 Maintenance and Utilities ✓ -29125 29200 Total Variable Costs Fixed Costs Supervision Insurance Depreciation -487473 488800 19500 16500 3300 3300 27550 Total Fixed Costs 50350 Total Costs 27550 47350 -537823 $ 536150 $ 26 The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,640 kayaks during 2022. 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 $1.20 per pound, and the finishing kits cost $210 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 $17 per hour, and the type II are paid $14 per hour. Manufacturing overhead is budgeted at $414,840 for 2022, broken down as follows. Variable costs Indirect materials $46,400 Manufacturing supplies 64,960 Maintenance and utilities 102,080 213,440 Fixed costs Supervision 78,000 Insurance 13,200 Depreciation 110,200 201,400 Total $414,840 During the first quarter, ended March 31, 2022, 1,210 units were actually produced with the following costs. Polyethylene powder $82,912 Finishing kits 254,360 Type I labor 41,140 Type II labor 52,120 Indirect materials 12,100 Manufacturing supplies 16,968 Maintenance and utilities 29,200 Supervision 16,500 Insurance 3,300 Depreciation 27,550 Total $536,150