ACCT-202 Accounting for Decision Making II Case Assignment Preparation of Master Budget 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 Direct material required per 100 boxes: Paperboard (S.20 per pound) Corrugating medium (5. 10 per pound Direct labor required per 100 boxes (S12.00 per hour) 25 hour 50 hour 30 pounds 20 pounds 70 pounds 30 pounds The following production-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. Production overhead is applied on the basis of direct-labor hours. Indirect material $ 10,500 Indirect labor 50,000 Utilities Property taxes 18,000 Insurance Depreciation 29,000 Total 25,000 16,000 $148.500 The following selling and administrative expenses are anticipated for the next year Salaries and fringe benefits of sales personnel S 75,000 Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total The sales forecast for the next year is as follows: 15,000 90,000 26,000 4,000 $210,000 Sales Volume Sales Price Box type C 500.000 boxes $ 90.00 per hundred boxes Box type P 500,000 boxes 130.00 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