Problem 9.42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) [The following infomation 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 ($8.32 per pound) Corrugating medium (se. 16 per pound) Direct labor required per 100 boxes ($16.ee per hour) 5e pounds de pounds 35 hour 90 pounds se pounds e.ne hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 440,000 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 Total $ 13,35e 91,65e 37,5ee 25, eee 18.ee 45,5ee $231, eee 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 $127, See 27.5ee 145, Bee 44,8 7. Bee $351, cee The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 445,boxes 445,880 boxes Sales Price $115.ee 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 Desired Ending Inventory January 1 December 31 Finished goods: Box type C 20,680 boxes 15,000 boxes Box type P 30.080 boxes 25,000 boxes Raw material: Problem 9-42 Part 7 7. Prepare the budgeted income statement for the next year. (Do not round Intermediate calculations. Answer is not complete. Sales revenue Less: Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income tax expense Os 1.200,500 571,825 S718,675 350,000 308,175 147 2703 $ 2.302.705