[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 ($0.28 per pound) Corrugating medium ($0.14 per pound) Direct labor required per 100 boxes ($15.00 per hour) ound) 45 pounds 35 pounds 0.30 hour . 36 pound 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 435,000 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, 200 65,465 36,000 24,000 17,000 44,000 $199,665 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 $126,000 27,000 144,000 43,500 6,900 $347,400 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 440,000 boxes 440,000 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 19,000 boxes 29,000 boxes 14,000 boxes 24,000 boxes Finished goods : Box type C Box type P Raw material: Paperboard Corrugating medium 19,500 pounds 9,500 pounds 9,500 pounds 14,500 pounds Prepare a master budget for Fresh Pak Corporation for the next year. Assume an income tax rate of 40 percent. Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) Box C Box P Total Sales (in units) Sales price per unit Sales revenue $ 0 $ 0 $ 2. Prepare the production budget for the next year. Box C Box P Sales Total units needed Production requirements 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 Req 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) 0.45 Raw material required for production (pounds) 0.85 9,500 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (paperboard) $ 0.28 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 Req 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) 0.35 0.45 14,500 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium) $ 0.14