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) 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 (50.36 per pound) Corrugating medium (10.18 per pound) Direct labor required per 100 boxes ($18.00 per hour) 25 pounds 15 pounda 0.40 hour 65 pounds 25 pound 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 $ 12,600 89,520 36.000 24,000 19,000 38.000 5219, 120 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 $120,000 25,000 140,000 41.500 6,500 $333,000 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 420,000 boxes 420,000 boxes Sales Price $140.00 per hundred boxes 200.00 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 yearl Expected Inventory January Desired Ending Inventory December 31 15.000 boxes 25,000 boxes 10.000 boxes 20.000 boxes Pinished goods Dox type C Box type P Raw material Paperboard Corrugating medium 17,500 pounds 7,500 pounds 7.500 pounds 12,500 pounds Prepare a master budget for Fresh Pak Corporation for the next year. Assume an income tax rate of 35 percent. Problem 9-42 Part 3 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 Reg 3B Prepare the direct-material budget for paperboard. Box P Total Paperboard Box C Production requirement (number of boxes) Raw material required per box (pounds) Raw material required for production (pounds) Add: Desired ending raw material inventory Total raw material needs Less: Beginning raw material inventory Raw material to be purchased Price (per pound) Cost of purchases (paperboard) Required information WITH Complete this question by entering your answers in the tabs below. Req Reg 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) Raw material required for production (pounds) 0.15 0.25 Total raw material needs Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium)