Edgeworth Box Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.

The following manufacturing-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Manufacturing overhead is applied on the basis of direct-labor hours.

The following selling and administrative expenses are anticipated for the next year.

The sales forecast for the next year is as follows:

The following inventory information is available for the next year.

Required: 

Prepare a master budget for Edgeworth Box Corporation for the next year. Assume an income tax rate of 35 percent. Include the following schedules.

1. Sales budget.
2. Production budget.
3. Direct-material budget.
4. Direct-labor budget.
5. Manufacturing-overhead budget.
6. Selling and administrative expense budget.
7. Budgeted income statement.

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Direct material required per 100 boxes: Corrugating medium ($.15 per pound). Paperboard ($.30 per pound).. Direct labor required per 100 boxes ($18.00 per hour).. C Type of Box P 20 pounds 30 pounds 30 pounds 70 pounds .25 hour 50 hour