FreshPak Corporation manufactures two types of cardboard boxes used In shipping canned food, frult, and vegetables. The canned food box (type C) and the perlshable food box (type P) have the following material and labor requirements. Type of Box Direct material required 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 per h 0.30 hour 0.60 hour 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 Indirect labor Utilities Property taxes Insurance Depreciation Total $13,950 88,450 43,500 29,000 22,000 51,500 $248,400 The following selling and administrative expenses are anticipated for the next year Salaies and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total $133,500 29,500 149,000 46,000 7,400 $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 type P $135.00 per hundred boxes 195.00 per hundred boxes The following Inventory Information is avallable for the next year. The unlt production costs for each product are expected to be the same this year and next year. Expected Inventory January 1 Desired Ending Inventory December 31 Finished goods: Box type C Box type P 13,500 boxes 23,500 boxes 8,500 boxes 18,500 boxes Raw material: Paperboard Corrugating medium 15,000 pounds 6,000 pounds 5,000 pounds 11,000 pounds 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, frult, and vegetables. The canned food box (type C) and the perlshable food box (type P) have the following material and labor requirements. Type of Box Direct material required 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 per h 0.30 hour 0.60 hour 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 Indirect labor Utilities Property taxes Insurance Depreciation Total $13,950 88,450 43,500 29,000 22,000 51,500 $248,400 The following selling and administrative expenses are anticipated for the next year Salaies and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total $133,500 29,500 149,000 46,000 7,400 $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 type P $135.00 per hundred boxes 195.00 per hundred boxes The following Inventory Information is avallable for the next year. The unlt production costs for each product are expected to be the same this year and next year. Expected Inventory January 1 Desired Ending Inventory December 31 Finished goods: Box type C Box type P 13,500 boxes 23,500 boxes 8,500 boxes 18,500 boxes Raw material: Paperboard Corrugating medium 15,000 pounds 6,000 pounds 5,000 pounds 11,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an Income tax rate of 40 percent
