FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, frui... (2 bookmarks) 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 ($.20 per pound) ......................................................................................... 30 pounds 70 pounds Corrugating medium ($.10 per pound) ........................................................................... 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) ................................................. .25 hour .50 hour The following manufacturing-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. Manufacturing overhead is applied on the basis of direct-labor hours. Indirect material ............................................................................................................................................ $ 10,500 Indirect labor ................................................................................................................................................ 50,000 Utilities ......................................................................................................................................................... 25,000 Property taxes ............................................................................................................................................... 18,000 Insurance ..................................................................................................................................................... 16,000 Depreciation ................................................................................................................................................. 29,000 Total ............................................................................................................................................................. $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel ................................................................................................... $ 75,000 Advertising ...................................................................................................................................................... 15,000 Management salaries and fringe benefits .......................................................................................................... 90,000 Clerical wages and fringe benefits ..................................................................................................................... 26,000 Miscellaneous administrative expenses ............................................................................................................. 4,000 Total ................................................................................................................................................................ $210,000 The sales forecast for the next year is as follows: Sales Volume Sales Price Box type C ......................................................................................... 500,000 boxes $ 90.00 per hundred boxes Box type P ......................................................................................... 500,000 boxes 130.00 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 C ................................................................................ 10,000 boxes 5,000 boxes Box type P ................................................................................ 20,000 boxes 15,000 boxes Raw material: Paperboard .............................................................................. 15,000 pounds 5,000 pounds Corrugating medium ................................................................. 5,000 pounds 10,000 pounds Required: Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. Include the following schedules. 1. Sales budget. 2. Production budget. 3. Direct-material budget. 4. Direct-labor budget. 5. Manufacturing-overhead budget. 6. Selling and administrative expense budget. 7. Budgeted income statement. ( Hint: To determine cost of goods sold, first compute the manufacturing cost per unit for each type of box. Include applied manufacturing overhead in the cost.) Please show on excel a step by step on how the answer was found. Just need help with question 7.