Required information Problem 9-42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) [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) 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 470,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. 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 $ 14,250 60,990 46,500 31,000 24,000 54,500 $231,240 The sales forecast for the next year is as follows: Sales Volume 475,000 boxes 475,000 boxes Box type C Box type P Finished goods: Box type C Box type P Raw material: Paperboard Corrugating medium Problem 9-42 Part 5 Sales Price $145.00 per hundred boxes 205.00 per hundred boxes Expected Inventory January 1 15,500 boxes 25,500 boxes $136,500 30,500 16,000 pounds 7,000 pounds 151,000 47,000 7,600 $372,600 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. 5. Prepare the production-overhead budget for the next year. 25 pounds 15 pounds 0.40 hour Desired Ending Inventory December 31 с 10,500 boxes 20,500 boxes 6,000 pounds 12,000 pounds P 65 pounds 25 pounds 0.80 hour Prepare master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.