Problem 4 Gannon 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 anc labor requirements. Direct material required per 100 boxes: Paperboard (S.20 per pound) Corrugating medium ($.10 per pound) Direct labor required per 100 boxes ($12.00 per hour) .25 hour 30 pounds 70 pounds 20 pounds 30 pounds 50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rat based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material 10,500 Indirect labor 50,000 25,000 Property taxes 18,000 16,000 Depreciation 29,000 $148,500 Utilities Insurance 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 75,000 15,000 90,000 26,000 4,000 $210,000 Total 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 Box type F 10,000 boxes 20,000 boxes 5,000 boxes 15,000 boxes Raw material: 15,000 pounds 5,000 pounds 10,000 pounds Corrugating medium 5,000 pounds Required: Prepare the following budgets for Gannon Corporation for the next year obtain credit . You must show all your calculati 1. Sales budget. 2. Production budget. 3. Direct-material budget (in quantities and dollars). 4. Direct-labor budget. 5. Production-overhead budget 6. Selling and administrative expense budget