4 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. 1 Part 1 of 7 points 03:32:57 Skipped 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) Type of Box P 45 pounds 35 pounds 0.30 hour 85 pounds 45 pounds 0.60 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 405,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. eBook References Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 12,300 92,110 33,000 22,000 17,000 35,000 $211,410 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel Advertising $117,000 24,000 Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total 138,000 40,500 6,300 $325,800 Sales Volume The sales forecast for the next year is as follows: Sales Price Box type C Box type P 410,000 boxes 410,000 boxes $130.00 per hundred boxes 190.00 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 Desired Ending Inventory January 1 December 31 Finished goods: Box type C 13,000 boxes 8,000 boxes Box type P 23,000 boxes 18,000 boxes Raw material: Paperboard 16,500 pounds Corrugating medium 6,500 pounds 6,500 pounds 11,500 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 35 percent. Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) Sales (in units) Sales price per unit Sales revenue Box C Box P Total $ 0 $ 0 $ 0 2. Prepare the production budget for the next year. Sales Total units needed Production requirements Box C Box P Problem 9-42 Part 3 3-a. Prepare the direct-material budget for paperboard. 3-b. Prepare the direct-material budget for corrugating medium. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Prepare the direct-material budget for paperboard. Paperboard Box C Box P Total Production requirement (number of boxes) Raw material required per box (pounds) Raw material required for production (pounds) Total raw-material needs 0.45 0.85 6,500 $ 0.32 Raw material to be purchased Price (per pound) Cost of purchases (paperboard) < Req 3A Req 3B > Problem 9-42 Part 3 3-a. Prepare the direct-material budget for paperboard. 3-b. Prepare the direct-material budget for corrugating medium. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Prepare the direct-material budget for corrugating medium. Corrugating Medium Box C Box P Total Production requirements (number of boxes) Raw material required per box (pounds) 0.35 0.45 Raw material required for production (pounds) Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium) < Req 3A Req 3B 11,500 $ 0.16 Problem 9-42 Part 4 4. Prepare the direct-labor budget for the next year. (Do not round intermediate calculations. Round "Direct labor required per box (hours)" to 4 decimal places.) Box C Box P Total Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate Total direct-labor cost 5. Prepare the production-overhead budget for the next year. Total production overhead 6. Prepare the selling and administrative expense budget for the next year. Total selling and administrative expenses 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)