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 ($0.30 per pound) Corrugating medium ($0.15 per pound) Direct labor required per 100 boxes ($18.00 per hour) Type of Box P 40 pounds 30 pounds 0.25 hour 80 pounds 40 pounds 0.50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 400,000 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 $ 12,150 95,850 31,500 21,000 16,000. 33,500 $210,000 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 i Miscellaneous administrative expenses Total $115,500 23,500 137,000 40,000 6,200 $322,200 The sales forecast for the next year is as follows: Sales Volume Box type C Box type P 405,000 boxes 405,000 boxes Sales Price $125.00 per hundred boxes 185.00 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. Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium Expected Inventory January 1 Desired Ending Inventory December 31 12,000 boxes 22,000 boxes 7,000 boxes 17,000 boxes 16,000 pounds 6,000 pounds 6,000 pounds 11,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. 4. Prepare the direct-labor budget for the next year. (Do not round intermediate calculations. Round "Direct labor required per box (hours)" to 4 decimal places.) Answer is complete but not entirely correct. Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate Total direct-labor cost Box C Box P Total 400,000 400,000 0.2500x 0.5000 100,000 200,000 300,000 $ 18 $ 5,400,000