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 ($0.34 per pound) Corrugating medium ($0.17 per pound) Direct labor required per 100 boxes ($14.00 per hour) Type of Box C 40 0.35 50 pounds pounds hour 90 pounds 50 pounds 0.70 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 410,000 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 $ 12,450 82,190 34,500 23,000 18,000 36,500 $ 206,640 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 The sales forecast for the next year is as follows: $ 118,500 24,500 139,000 41,000 6,400 $ 329,400 Box type C Box type P Sales Volume 415,000 boxes 415,000 boxes Sales Price $ 135.00 195.00 per hundred boxes 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 Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium January 1 December 31 14,000 boxes 9,000 boxes 24,000 boxes 19,000 boxes 17,000 pounds 7,000 pounds 7,000 pounds 12,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. 7. 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. Sales revenue Less: Cost of goods sold Gross margin Selling and administrative expenses Income before taxes 329,400 Income tax expense Net income Required information [The following information applies to the questions displayed below.] 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 ($0.34 per pound) Corrugating medium ($0.17 per pound) Direct labor required per 100 boxes ($14.00 per hour) Type of Box C 50 pounds 40 0.35 90 pounds pounds hour 50 pounds 0.70 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 410,000 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 $ 12,450 82,190 34,500 23,000 18,000 36,500 $ 206,640 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 The sales forecast for the next year is as follows: $ 118,500 24,500 139,000 41,000 6,400 $ 329,400 Box type C Box type P Sales Volume 415,000 boxes 415,000 boxes Sales Price $ 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. Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium Expected Inventory Desired Ending Inventory December 31 9,000 boxes January 1 14,000 boxes 24,000 boxes 19,000 boxes 17,000 pounds 7,000 pounds 7,000 pounds 12,000 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. Note: Do not round intermediate calculations. Round "Direct labor required per box (hours)" to 4 decimal places. Box C Box P Total Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate Total direct-labor cost 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 ($0.34 per pound) Corrugating medium ($0.17 per pound) Direct labor required per 100 boxes ($14.00 per hour) Type of Box P 0.35 50 pounds 40 pounds hour 90 pounds 50 pounds 0.70 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 410,000 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 $ 12,450 82,190 34,500 23,000 18,000 36,500 $ 206,640 Total 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 The sales forecast for the next year is as follows: $ 118,500 24,500 139,000 41,000 6,400 $ 329,400 Box type C Box type P Sales Volume 415,000 boxes 415,000 boxes Sales Price $ 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. Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium Expected Inventory Desired Ending Inventory January 1 14,000 boxes 24,000 boxes 17,000 pounds 7,000 pounds December 31 9,000 boxes 19,000 boxes 7,000 pounds 12,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. 3-a. Prepare the direct-material budget for paperboard. 3-b. Prepare the direct-material budget for corrugating medium. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Prepare the direct-material budget for paperboard. Paperboard Box C Box P Total Production requirement (number of boxes) 410,000 Raw material required per box (pounds) 0.50 Raw material required for production (pounds) 205,000 Add: Desired ending raw-material inventory Total raw-material needs Less: Beginning raw-material inventory Raw material to be purchased Price (per pound) Cost of purchases (paperboard) Required information [The following information applies to the questions displayed below.] 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 ($0.34 per pound) Corrugating medium ($0.17 per pound) Direct labor required per 100 boxes ($14.00 per hour) Type of Box P 40 0.35 50 pounds pounds hour 90 pounds 50 pounds 0.70 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 410,000 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 $ 12,450 82,190 34,500 23,000 18,000 36,500 $ 206,640 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 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 415,000 boxes 415,000 boxes $ 118,500 24,500 139,000 41,000 6,400 $ 329,400 Sales Price $ 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 Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium January 1 December 31 14,000 boxes 24,000 boxes 9,000 boxes 19,000 boxes 17,000 pounds 7,000 pounds 7,000 pounds 12,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. B-a. Prepare the direct-material budget for paperboard. 3-b. Prepare the direct-material budget for corrugating medium. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Prepare the direct-material budget for corrugating medium. Corrugating Medium Box C Box P Total Production requirements (number of boxes) Raw material required for production (pounds) Raw material required per box (pounds) Add: Desired ending raw-material inventory Total raw-material needs Less: Beginning raw-material inventory Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium)