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. e of Box Direct material re quired per 100 boxes: Paperboard ($0.40 per pound) 45 pounds 35 pounds 85 pounds 45 pounds Corrugating medium ($0.20 per pound) Direct labor required per 100 boxes ($20.00 0.30 hour 0.60 hour The following production-overhead costs are anticipated for the next year. The predetemined 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 Indirect labor Utilities Property taxes Insurance Depreciation Total $13,950 88,450 43,500 29,000 22,000 51500 $248.400 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe bene fits Clerical wages and fringe benefits Miscellaneous adminis tratve expenses Total 133,500 29,500 149,000 46,000 7400 $365.400 The sales forecast for the next year is as follows: Sales Volume 465,000 boxes 465,000 boxes Sales Price Box type C Box 135.00 per hundred boxes 195.00 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. Desired Ending Expected Inventory January 1 Inventory December 31 8,500 boxes 8,500 boxes 5,000 pounds Finished goods: Box type C Box type P 3,500 boxes 23,500 boxes Raw materiat 5,000 pounds medium 6,000 Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent 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. e of Box Direct material re quired per 100 boxes: Paperboard ($0.40 per pound) 45 pounds 35 pounds 85 pounds 45 pounds Corrugating medium ($0.20 per pound) Direct labor required per 100 boxes ($20.00 0.30 hour 0.60 hour The following production-overhead costs are anticipated for the next year. The predetemined 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 Indirect labor Utilities Property taxes Insurance Depreciation Total $13,950 88,450 43,500 29,000 22,000 51500 $248.400 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe bene fits Clerical wages and fringe benefits Miscellaneous adminis tratve expenses Total 133,500 29,500 149,000 46,000 7400 $365.400 The sales forecast for the next year is as follows: Sales Volume 465,000 boxes 465,000 boxes Sales Price Box type C Box 135.00 per hundred boxes 195.00 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. Desired Ending Expected Inventory January 1 Inventory December 31 8,500 boxes 8,500 boxes 5,000 pounds Finished goods: Box type C Box type P 3,500 boxes 23,500 boxes Raw materiat 5,000 pounds medium 6,000 Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent
