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.

The following production$-$overhead costs are anticipated for the next year. The predetermined overhead rate is based on

a production volume of $445,000$ units for each type of box. Production overhead is applied on the basis of direct$-$labor

hours.

The following selling and administrative expenses are anticipated for the next year.

The sales forecast for the next year is as follows:

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.

Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of

$40$ percent.

Prepare the budgeted income statement for the next year. $($Hint$.$ To determine cost of goods sold, first compute the

production cost per unit for each type of box. Include applied production overhead in the cost.$)$

Note: Do not round intermediate calculations.