[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 C P Direct material required per 100 boxes: Paperboard ($0.38 per pound) Corrugating medium ($0.19 per pound) Direct labor required per 100 boxes ($19.00 per hour) 40 pounds 30 pounds 2.20 hour 80 pounds 40 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 455,000 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 $ 13,880 82,710 42,00 28,888 21, eee 50, eee $237,51e 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 $132,880 29,00 148,888 45,500 7,380 $361,800 The sales forecast for the next year is as follows: The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 460,000 boxes 460,080 boxes Sales Price $130.ee per hundred boxes 190.ee 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 Desired Ending Inventory January 1 December 31 Finished goods: Box type C 12,580 boxes 7,500 boxes Box type P 22,500 boxes 17,500 boxes Raw material: Paperboard 14,5ee pounds 4,580 pounds Corrugating medium 5,580 pounds 10,580 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 30 percent. 3-2. 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. Rea 3A Req 3B Complete this question by entering your answers in the tabs below. Rea 3A Req 3B Prepare the direct-material budget for paperboard. Box P Total 0.80 Paperboard Box C Production requirement (number of boxes) Raw material required per box (pounds) 0.40 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) 4,500 S 0.38 Reg 3A Req3B > 1 Required information Complete this question by entering your answers in the tabs below. Reg 3A Req 3B Prepare the direct-material budget for corrugating medium. Corrugating Medium Box C Production requirements (number of boxes) Raw material required per box (pounds) 0.30 Raw material required for production (pounds) Box P Total 0.40 10,500 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium) S 0.19