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 ($0.30 per pound) Corrugating medium ($0.15 per pound) Direct labor required per 100 boxes ($18.00 per hour) 40 pounds 30 pounds 8.25 hour 88 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 21,60e 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 $115,500 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 $115,500 23,500 137, eee 40, eee 6,200 $322, 200 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 405, eee boxes 405, eee boxes Sales Price $125.ee 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. Expected Inventory Desired Ending Inventory January 1 December 31 Finished goods: Box type 12,000 boxes 7 7.000 boxes Box type P 22,000 boxes 17,000 boxes Raw material: Paperboard 16,000 pounds 6,00 pounds Corrugating medium 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 Problem 9-42 Part 5 5. Prepare the production-overhead budget for the next year. nicos Total production overhead $ 0 Problem 9-42 Part 6 6. Prepare the selling and administrative expense budget for the next year 0 Total selling and administrative expenses Problem 9-42 Part 7 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)