Problem 9-42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) Fresh Pak Corporation manufactures two types of cardboard boxes used in shipping canned food and vegetables. The canned food box (type C) and the perishable food box (type P) have the follow material and labor requirements. Type of Box 1. Total sales revenue: $1,100,000 3. Cost of purchases (paper- board): $97,000 5. Total overhead: $148,500 7. Predetermined overhead rate: $40 per hour Direct material required per 100 boxes: Paperboard (5.20 per pound) Corrugating medium (5. 10 per pound) Direct labor required per 100 boxes ($12.00 per hour) 30 pounds 20 pounds 25 hour 70 pounds 30 pounds 50 hou The following production-overhead costs are anticipated for the next year. The predeterminado head rate is based on a production volume of 495,000 units for each type of box. Production overlic y Production overhead is applied on the basis of direct labor hours. $10,500 50,000 Indirect material Indirect labor Utilities Property taxes Insurance 25.000 18.000 16.000 Decati ving selling and administrative expenses are anticipated for the next year. The following selling and aries 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 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 500.000 boxes 500,000 boxes Sales Price $90.00 per hundred 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 January 1 Desired Ending Inventory December 31 10,000 boxes 20,000 boxes 5,000 boxes 15,000 boxes Finished goods: Box type C Bax type . Raw material: Paperboard Corrugating medium 15,000 pounds 5.000 pounds 5.000 pounds 10,000 pounds Required: Prepare a mast Prepare a master budget for Fresh Pak Corporation for the next year. Assume an income tax dle of 40 percent. Include the following schedules. 1. Sales budget. 2. Production budget 3. Direct-material budget. 4. Direct-labor budget. 5. Production-overhead budget. 6. Selling and a 7. Budgeted in Selling and administrative expense budget. ed Income statement. (Hint: To determine cost of goods sold, first compute the production it for each type of box. Include applied production overhead in the cost) cost per unit for each ty