2 of 7 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. Book ferences Direct material required per 100 boxes: Paperboard ($0.28 per pound) Corrugating medium ($0.14 per pound). Direct labor required per 100 boxes ($14.00 per hour). Type of Box C P 35 pounds 75 pounds 25 pounds 0.20 hour 35 pounds 0.40 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 395,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 12,000 45,050 30,000 20,000 15,000. 32,000 $154,050 The following selling and administrative expenses are anticipated for the next year. 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 $114,000 23,000 136,000 39,500 6,100 $318,600 The sales forecast for the next year is as follows: Sales Price Sales Volume Box type C Box type P 400,000 boxes 400,000 boxes $120.00 per hundred boxes 180.00 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 11,000 boxes 6,000 boxes Box type P 21,000 boxes 16,000 boxes Raw material: Paperboard 15,500 pounds 5,500 pounds Corrugating medium 5,500 pounds 10,500 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 30 percent. Box type C Box type P Sales Volume 400,000 boxes 400,000 boxes Sales Price $120.00 per hundred boxes 180.00 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 11,000 boxes 6,000 boxes Box type P 21,000 boxes 16,000 boxes Raw material: Paperboard 15,500 pounds 5,500 pounds Corrugating medium 5,500 pounds 10,500 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 30 percent. 2. Prepare the production budget for the next year. Sales Total units needed Production requirements Box C Box P