left column choices are advertising, clerical wages and fringe benefits, insurance, management salaries and fringe benefits, miscallaneous administrative expenses, salaries amd fringe benefits of sales personnel, and utilities

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 Direct material required per 100 boxes Paperboard (50.36 per pound) 25 pounds 65 pounds Corrugating medium (60.10 per pound) 15 pounds 25 pounds direct labor required per 100 boxes ($18.00 per hour) 0.40 hour 0.80 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 415,000 units for each type of box Production overhead is applied on the basis of direct-lobor hours Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 12,600 89.520 36,000 24,000 19,000 23,000 5219,120 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 $120,000 25,000 240,000 41,500 6.500 $333,000 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 420,000 boxes 420,000 boxes Sales Price $140.00 per hundred boxes 200.00 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 January 1 Desired Ending Inventory December 31 15,000 boxes 25,000 boxes 10,000 boxes 20,000 boxes Pinished goods : Box type C Box type P Raw materiali Paperboard Corrugating medium 17,500 pounds 7,500 pounds 7,500 pounds 12,500 pounds Prepare a master budget for Fresh Pak Corporation for the next year. Assume an income tax rate of 35 percent Problem 9-42 Part 6 6. Prepare the selling and administrative expense budget for the next year. $ 0 Total selling and administrative expenses