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Current Designs 23 a-c (Part Level Submission) The Crane staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,200 kayaks during 2020. Each kayak will require 74 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 $250 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 $419,200 for 2020, broken down as follows. Variable costs Indirect materials Manufacturing supplies Maintenance and utilities $46,200 63,000 109,200 218,400 Fixed costs Supervision Insurance Depreciation 76,000 13,600 111,200 200,800 $419,200 Total During the first quarter, ended March 31, 2020, 1,100 units were actually produced with the following costs. , . Polyethylene powder $99,490 Finishing kits 275,310 Type I labor 39,600 Type II labor 50,650 Indirect materials 12,100 Manufacturing supplies 16,548 Maintenance and utilities 31,000 Supervision 16,900 Insurance 3,400 Depreciation 27,800 Total $572,798 (a) Prepare the annual manufacturing budget for 2020, assuming that 4,200 kayaks will be produced. (List variable costs before fixed costs.) CRANE Rotomolded Line Manufacturing Budget For the Year Ended December 31, 2020 Click if you would like to Show Work for this question: Open Show Work Current Designs 24 a-b (Part Level Submission) The executive team at Current Designs has gathered to evaluate the company's operations for the last month. One of the topics on the agenda is the special order from Huegel Hollow, which was presented in CD2. Recall that Current Designs had a special order to produce a batch of 40 kayaks for a client, and you were asked to determine the cost of the order and the cost per kayak. Mike Cichanowski asked the others if the special order caused any particular problems in the production process. Dave Thill, the production manager, made the following comments: "Since we wanted to complete this order quickly and make a good first impression on this new customer, we had some of our most experienced type I workers run the rotomold oven and do the trimming. They were very efficient and were able complete that part of the manufacturing process even more quickly than the regular crew. However, the finishing on these kayaks required a different technique than what we usually use, so our type II workers took a little longer than usual for that part of the process." Deb Welch, who is in charge of the purchasing function, said, "We had to pay a little more for the polyethylene powder for this order because the customer wanted a color that we don't usually stock. We also ordered a little extra since we wanted to make sure that we had enough to allow us to calibrate the equipment. The calibration was a little tricky, and we used all of the powder that we had purchased. Since the number of kayaks in the order was fairly small, we were able to use some rope and other parts that were left over from last year's production in the finishing kits. We've seen a price increase for these components in the last year, so using the parts that we already had in inventory cut our costs for the finishing kits." (a) Your answer is correct. Based on the comments above, predict whether each of the following variances will be favorable or unfavorable. If you don't have enough information to make a prediction, use "Not Enough Information." 1. Quantity variance for polyethylene powder. Unfavorable 2. Price variance for polyethylene powder. Unfavorable 3. Quantity variance for finishing kits. Not Enough Information 4. Price variance for finishing kits. Favorable 5. Quantity variance for type I workers. Favorable 6. Price variance for type I workers. Not Enough information 7. Quantity variance for type II workers. Unfavorable v 8. Price variance for type workers. Not Enough Information Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT (b) Diane Buswell examined some of the accounting records and reported that Current Designs purchased 2,110 pounds of pellets for this order at a total cost of $5,697. 40 finishing kits were assembled at a total cost of $6,360. The payroll records showed that the type I employees worked 118 hours on this project at a total cost of $1,652. The type II finishing employees worked 168 hours at a total cost of $1,890.00. A total of 40 kayaks were produced for this order. The standards that had been developed for this model kayak were used in CD2 and are reproduced here. For each kayak: 50 pounds of polyethylene powder at $2.50 per pound 1 finishing kit (rope, seat, hardware, etc.) at $164 3 hours of type I labor from people who run the oven and trim the plastic at a standard wage rate of $14 per hour 4 hours of type II labor from people who attach the hatches and seat and other hardware at a standard wage rate of $11 per hour. Calculate the eight variances that are listed below. (Round price variance for type II workers to 2 decimal places, e.g. 15.25 and all other answers to o decimal places, e.g. 25.) Quantity variance for polyethylene powder $ Price variance for polyethylene powder $ Quantity variance for finishing kits $ Price variance for finishing kits Quantity variance for type I workers Price variance for type I workers Quantity variance for type II workers Price variance for type II workers Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT

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