10 Required information [The following information applies to the questions displayed below.) FreshPak 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. Part 7 of 7 Type of Box P 10 points Direct material required per 100 boxes: Paperboard ($0.32 per pound) Corrugating medium ($0.16 per pound) Direct labor required per 100 boxes ($16.00 per hour) 35 pounds 25 pounds 8.20 hour 75 pounds 35 pounds @.40 hour eBook The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 480,000 units for each type of box. Production overhead is applied on the basis of direct labor hours. Pint References Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 14,550 81,530 49,500 33,000 26,800 57,500 $262,080 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits clerical wages and fringe benefits Miscellaneous administrative expenses Total $139,500 31,500 153,000 48,000 2,800 $379,800 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 485,000 boxes 485,000 boxes Sales Price $125.00 per hundred boxes 185.ee per hundred boxes The following Inventory Information is available for the next year. The unit production costs for each product are expected to be the same this year and next year. Expected Inventory January 1 Desired Ending Inventory December 31 Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium 17,580 boxes 27,580 boxes 12,580 boxes 22,500 boxes 17, one pounds 8,080 pounds 7,000 pounds 13,080 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. 7. Prepare the budgeted Income statement for the next year. (Do not round intermediate calculations.) Sales revenue Less Cost of goods sold Gross margin Selling and administrative oxpenses Income before taxes Income tax expense Net income