Assume an income tax rate of 40 percent.

1. Prepare the sales budget for the next year.

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

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. Type of Box Direct material required per 100 boxes: Paperboard ($0.28 per pound) Corrugating medium ($0.14 per pound) 25 pounds 15 pounds 65 pounds 25 pounds Direct labor required per 100 boxes ($15.00 per hour) 0.40 hour 0.80 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 470,000 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 $ 14,250 60,990 46,500 31,000 24,000 54,500 $231,240 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. Type of Box Direct material required per 100 boxes: Paperboard ($0.28 per pound) Corrugating medium ($0.14 per pound) 25 pounds 15 pounds 65 pounds 25 pounds Direct labor required per 100 boxes ($15.00 per hour) 0.40 hour 0.80 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 470,000 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 $ 14,250 60,990 46,500 31,000 24,000 54,500 $231,240