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. Direct material required per 100 boxes: Paperboard ($0.40 per pound) Corrugating medium ($0.20 per pound) Direct labor required per 100 boxes ($20.00 per hour) Type of Box P 45 pounds 85 pounds 35 pounds 0.30 hour 45 pounds 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. Salaries 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 Price Sales Volume Box type C Box type P 465,000 boxes 465,000 boxes $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. Expected Inventory Desired Ending Inventory January 1 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 15,000 pounds Corrugating medium 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. Problem 9-42 Part 5 5. Prepare the production-overhead budget for the next year. Answer is not complete. Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total production overhead $ 0