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. Direct material required per 100 boxes: Paperboard ($0.20 per pound) Corrugating medium ($0.10 per pound) Direct labor required per 100 boxes ($12.00 per hour) Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 10,500 50,000 25,000 18,000 16,000 29,000 $148,500 The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total Box type C Box type P The following selling and administrative expenses are anticipated for the next year. The sales forecast for the next year is as follows: sales volume 500,000 boxes 500,000 boxes Type of Box C $ 75,000 15,000 90,000 26,000 4,000 $210,000 30 pounds 20 pounds 0.25 hour Sales Price $ 90.00 per hundred boxes 130.00 per hundred boxes P 70 pounds 30 pounds 0.50 hour
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. Direct material required per 100 boxes: Paperboard ($0.20 per pound) Corrugating medium ($0.10 per pound) Direct labor required per 100 boxes ($12.00 per hour) Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 10,500 50,000 25,000 18,000 16,000 29,000 $148,500 The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total Box type C Box type P The following selling and administrative expenses are anticipated for the next year. The sales forecast for the next year is as follows: sales volume 500,000 boxes 500,000 boxes Type of Box C $ 75,000 15,000 90,000 26,000 4,000 $210,000 30 pounds 20 pounds 0.25 hour Sales Price $ 90.00 per hundred boxes 130.00 per hundred boxes P 70 pounds 30 pounds 0.50 hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text: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.
Finished goods:
Box type C
Box type P
Raw material:
Paperboard
Corrugating medium
Expected Inventory
January 1
10,000 boxes
20,000 boxes
15,000 pounds
5,000 pounds
Desired Ending Inventory
December 31
5,000 boxes
15,000 boxes
5,000 pounds
10,000 pounds
Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.
7. Prepare the budgeted Income statement for the next year. (Do not round Intermediate calculations.)
![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 ($0.20 per pound)
Corrugating medium ($0.10 per pound)
Direct labor required per 100 boxes ($12.00 per hour)
Indirect material
Indirect labor
Utilities
Property taxes
Insurance
Depreciation
Total
The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on
a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct-labor
hours.
$ 10,500
50,000
25,000
18,000
16,000
29,000
$148,500
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
The sales forecast for the next year is as follows:
sales volume
500,000 boxes
500,000 boxes
Box type C
Box type P
30 pounds
20 pounds
0.25 hour
$ 75,000
15,000
90,000
26,000
4,000
$210,000
Sales Price
$ 90.00 per hundred boxes
130.00 per hundred boxes
70 pounds
30 pounds
0.50 hour](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe15b8af0-27e1-4c12-b293-7f8d2f41b828%2F22242f32-5ee1-4604-a23a-974f17845166%2F8vjx2be_processed.png&w=3840&q=75)
Transcribed Image Text: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 ($0.20 per pound)
Corrugating medium ($0.10 per pound)
Direct labor required per 100 boxes ($12.00 per hour)
Indirect material
Indirect labor
Utilities
Property taxes
Insurance
Depreciation
Total
The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on
a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct-labor
hours.
$ 10,500
50,000
25,000
18,000
16,000
29,000
$148,500
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
The sales forecast for the next year is as follows:
sales volume
500,000 boxes
500,000 boxes
Box type C
Box type P
30 pounds
20 pounds
0.25 hour
$ 75,000
15,000
90,000
26,000
4,000
$210,000
Sales Price
$ 90.00 per hundred boxes
130.00 per hundred boxes
70 pounds
30 pounds
0.50 hour
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