Required information Problem 9-42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) IThe following information applies to the questions displayed below.J 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 Direct material required per 100 boxes Paperboard ($0.30 per pound) 40 pounds 80 pounds Corrugating medium ($0.15 per 30 pounds 40 pounds pound) Direct labor required per 100 boxes 0.25 hour 0.50 hour ($18.00 per hour) The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 400,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect 12, 150 material Indirect labor 95,850 Utilities 31,500 Property taxes 21,000 16,000 Insurance Depreciation 33,500 $210,000 Total The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of $115,500 sales personnel Advertising 23,500 Management salaries and fringe 137,000 benefits Clerical wages and fringe benefits 40,000 Miscellaneous administrative 6,200 expenses 322,200 Total The sales forecast for the next year is as follows Sales volume Sales Price 405,000 boxes 125.00 per hundred boxes BOX type C 185.00 per hundred boxes Box 405,000 boxes type P