Ek Fresh Pak 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 P Direct material required per 100 boxes: Paperboard ($.20 per pound) Comugating medium (8.10 per pound) Direct labor required per 100 boxes ($12.00 per hour) 30 pounds 70 pounds 20 pounds 30 pounds 25 bour 50 hour 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 25,000 Property taxes 18,000 Insurance 16,000 Depreciation 29.000 Total $149,500 The following selling and administrative expenses are anticipated for the next year. Page 418 Salaries and fringe benefits of sales personnel Management salaries and fringe benefits Clerical was and fringe bansett $ 75,000 18,000 90,000 26,000 4,000 Pro318%5Bdata-uuid-9c6 96846e4bdc100357a Miscellaneous administrative expenses Total 4,000 $210,000 The sales forecast for the next year is as follows: Sales Volume Sales Price Bax type C 500,000 boxes $90.00 per hundred boxes Bax type P500,000 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. Expected Tuventory Desired Ending luventory Jangary 1 December 31 10.000 boxes 20,000 boxes 5.000 boxes 15.000 boxes Finished goods Box type C Box type P Raw material Paperboard Corrugating medium 15.000 pounds 5.000 pounds 5.000 pounds 10.000 pounds 5. Production-overhead budget. 6. Selling and administrative expense budget. 7. Budgeted income statement. (Hint: To determine cost of goods sold, first compute the production cost per unit for each type of box Include applied production overhead in the cost.)