LLLLL 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. Type of Box Direct material required per 100 boxes: Paperboard ($0.40 per pound) Corrugating medium ($0.20 per pound) Direct labor required per 100 boxes ($28.00 per hour) 35 pounds 25 pounds 8.20 hour 75 pounds 35 pounds 8.40 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 425,000 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 12,900 54,600 33,000 22,800 15,000 41,000 $ 178,500 Total he following selling and administrative expenses are anticipated for the next year. 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 derical wages and fringe benefits Miscellaneous administrative expenses Total $123,000 26,000 142,000 42,500 6,700 $340,200 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 430,000 boxes 430,000 boxes Sales Price $115.00 per hundred boxes 175.00 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 D esired Ending Inventory December 31 17,000 boxes 27,000 boxes 12,000 boxes 22,000 boxes Finished goods: Box type C Box type P Raw material: Paperboard Gorrugating medium 18,500 pounds 8,500 pounds 8,500 pounds 13,500 pounds Prepare a master oudget for Fresh Pak Corporation for the next year Assume an income tax rate of 30 percent. 1711110 Iuel UUUU 10,JOU Puu U20 POUNU Corrugating medium 8,500 pounds 13,500 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 30 percent 5. Prepare the production-overhead budget for the next year. Total production overhead 5 6 7 of 7 :: Next > Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 30 percent. 6. Prepare the selling and administrative expense budget for the next year. Total selling and administrative expenses 11 Ne 18,500 pounds 8,500 pounds Corrugating me 8,500 pounds 13,500 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 30 percent. 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)
