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. Type of Box C P Direct material required per 100 boxes: Paperboard ($.20 per pound) Corrugating medium ($.10 per pound) 30 pounds 70 pounds 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) .25 hour .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 Indirect labor Utilities Property taxes Insurance Depreciation Total 20900 65,000 45,000 18,000 34,000 56000 $238,900 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 $95,000 56,000 60,000 46,000 4000 $261,000 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 Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium Sales Volume boxes 500,000 500,000 Sales Price per hundred boxes $150.00 200 Expected Inventory Jan 1st Desired Inventory Dec 31st 30,000 7,000 boxes 15,000 20,000 boxes 30,000 15,000 5,000 pounds 10,000 pounds