Required information [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 ($0.40 per pound) Corrugating medium ($0.20 per pound) Direct labor required per 100 boxes ($20.00 per hour) 45 pounds 35 pounds 0.30 hour 85 pounds 45 pounds 0.60 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 460,000 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 $ 13,950 88,450 43,500 29,000 22,000 51,500 $248,400 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel Novi $133,500 70 son 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 $133,500 29,500 149,000 46,000 7,400 $365,400 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 465,000 boxes 465,000 boxes Sales Price $135.00 per hundred boxes 195.00 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 13,500 boxes 23,500 boxes 8,500 boxes 18,500 boxes Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium 15,000 pounds 6,000 pounds 5,000 pounds 11,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. 6 Dronare the colline and administrative ananen hunnot for the navt vaar 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 13,500 boxes 23,500 boxes 8,500 boxes 18,500 boxes Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium 15,000 pounds 6,000 pounds 5,000 pounds 11,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. 6. Prepare the selling and administrative expense budget for the next year. Total selling and administrative expenses