[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 ($0.36 per pound) Corrugating medium ($0.18 per pound) Direct labor required per 100 boxes ($18.00 per hour) 35 pounds 25 pounds 0.20 hour 75 pounds 35 pounds 0.40 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 450,000 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 $ 13,650 87,950 40,500 27,000 20,000 48,500 $237,600 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 $130,500 28,500 147,000 45,000 7,200 $358,200 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 455,000 boxes 455,000 boxes Sales Price $125.00 per hundred boxes 185.00 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 11,500 boxes 21.500 boxes Finished goods: Box type C Box type 2 Raw material: Paperboard Corrugating medium 6,500 boxes 16,500 boxes 14,000 pounds 5,000 pounds 4,000 pounds 10,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an Income tax rate of 40 percent. 4. Prepare the direct-labor budget for the next year. (Do not round Intermediate calculations. Round "Direct labor required per box Thours)" to 4 decimal places.) Box c Box P Total Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate Total direct-labor cost