Edgeworth Box 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.

4 Direct-labor budget. (Do not round intermediate calculations.)

5 Production-overhead budget.

6. Selling and administrative expense budget.

7.	Budgeted income statement.

	Type of Box
	C		P
Direct material required per 100 boxes:
Corrugating medium ($0.20 per pound)	35	pounds	45	pounds
Paperboard ($0.40 per pound)	45	pounds	85	pounds
Direct labor required per 100 boxes ($20.00 per hour)	0.30	hour	0.60	hour

The unit production costs for each product are expected to be the same this year and next year.

The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 460,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours.

Indirect material	$	13,950
Indirect labor		88,450
Utilities		43,500
Property taxes		29,000
Insurance		22,000
Depreciation		51,500
Total	$	248,400

The following selling and administrative expenses are anticipated for the next year.

Salaries and fringe benefits of sales personnel	$	133,500
Advertising		29,500
Management salaries and fringe benefits		149,000
Clerical wages and fringe benefits		46,000
Miscellaneous administrative expenses		7,400
Total	$	365,400

The sales forecast for the next year is as follows:

	Sales Volume		Sales Price
Box type C	465,000	boxes	$	135	per hundred boxes
Box type P	465,000	boxes		195	per hundred boxes

The following inventory information is available for the next year.

	Expected Inventory January 1		Desired Ending Inventory December 31
Finished goods:
Box type C	13,500	boxes	8,500	boxes
Box type P	23,500	boxes	18,500	boxes
Raw material:
Corrugating medium	6,000	pounds	11,000	pounds
Paperboard	15,000	pounds	5,000	pounds

Prepare a master budget for Edgeworth Box Corporation for the next year. Assume an income tax rate of 40 percent. Include the following schedules.