Required information Problem 9.42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) [The following information applies to the questions displayed below.) Fresh Pak 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 P Direct material required per 100 boxes: Paperboard ($0.36 per pound) - Corrugating medium ($0.18 per pound) Direct labor required per 100 boxes ($18.00 per hour) 25 pounds 15 pounds 0.40 hour 65 pounds 25 pounds 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-labor hours. Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 12,600 89,520 36,000 24,000 19.000 38.000 $219, 120 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel Advertising $120,000 25,000 Ann 3-a. Prepare the direct- material budget for paperboard. 3-b. Prepare the direct-material budget for corrugating medium. Complete this question by entering your answers in the tabs below. Req Req 3B Prepare the direct-material budget for corrugating medium. Box P Total Corrugating Medium Box C Production requirements (number of boxes) Raw material required per box (pounds) 0.15 Raw material required for production (pounds) 0.25 12,500 Total raw material needs $ 0.18 Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium)