Ace Company 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 production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 425,000 units for each type of box. Production 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. The unit production costs for each product are expected to be the same this year and next year. Prepare a master budget for Ace Company for the next year. Assume an income tax rate of 30 percent. Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) 2. Prepare the production budget for the next year. 3-a. Prepare the direct-material budget for paperboard. 3-b. Prepare the direct-material budget for corrugating medium. 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.) 5. Prepare the production-overhead budget for the next year. 6. Prepare the selling and administrative expense budget for the next year. 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.) Information Given in Question (Assumptions) \begin{tabular}{|l|l|} \hline Production Overhead Costs \\ \hline Indirect material & \\ \hline Indirect labor & \\ \hline Utilities & \\ \hline Property taxes & \\ \hline Insurance & \\ \hline Depreciation & \\ \hline Total & $ \\ \hline \end{tabular} SG\&A Expenses Expected \begin{tabular}{|l|l|} \hline Salaries and fringe benefits of sales personnel & \\ \hline Advertising & \\ \hline Management salaries and fringe benefits & \\ \hline Clerical wages and fringe benefits & \\ \hline Miscellaneous administrative expenses & \\ \cline { 2 } al & $ \\ \hline \end{tabular} BUDGETS \begin{tabular}{l} Direct Materials Budget (Corrugating medium) \\ \hline Production requirement (number of boxes) \\ \hline Raw material required per box (pounds) \\ \hline Raw material required for production (pounds) \\ \hline Desired ending raw-material inventory \\ \hline Total raw-material needs \\ \hline Beginning raw-material inventory \\ \hline Raw material to be purchased \\ \hline Price (per pound) \\ \hline Cost of purchases (corrugating medium) \\ \hline Direct Labor Budget \\ \hline Production requirements (number of boxes) \\ \hline Direct labor required per box (hours) \\ \hline Direct labor required for production (hours) \\ \hline Direct-labor rate \\ \hline Total direct-labor cost \end{tabular} Production Overhead Budget Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total production overhead SG\&A Expense Budget Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total selling and administrative expenses \begin{tabular}{|l} Cost of goods sold calculation for income statement \\ \hline Paperboard \\ \hline Corrugating medium \\ \hline Direct labor \\ \hline Applied production overhead \\ \hline Production cost per unit \\ \hline Cost of goods sold \\ \hline \end{tabular} Budgeted Income Statement Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income tax expense Net income