FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 (30.28 per pound) Corrugating medium ($0.14 per pound) Direct labor required per 100 boxes ($15.00 per hour) Indirect material Indirect labor 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. Utilities Property taxes Insurance Depreciation Total Total $ 14,250 60,990 46,500 31,000 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 24,000 54,500 $231,240 type c Box type P The sales forecast for the next year is as follows: Sales Volume 475,000 boxes 475,000 boxes Finished goods: Box type c Box type P Raw material: Paperboard Corrugating mediun Sales Price $145.00 per hundred boxes 205.00 per hundred boxes Expected Inventory January 1 $136,500 30,500 151,000 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. 15,500 boxes 25,500 boxes 16,000 pounds 7,000 pounds 25 pounds 15 pounds 0.40 hour Desired Ending Inventory December 31 10,500 boxes 20,500 boxes 65 pounds 25 pounds 0.80 hour 6,000 pounds 12,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. 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 (30.28 per pound) Corrugating medium ($0.14 per pound) Direct labor required per 100 boxes ($15.00 per hour) Indirect material Indirect labor 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. Utilities Property taxes Insurance Depreciation Total Total $ 14,250 60,990 46,500 31,000 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 24,000 54,500 $231,240 type c Box type P The sales forecast for the next year is as follows: Sales Volume 475,000 boxes 475,000 boxes Finished goods: Box type c Box type P Raw material: Paperboard Corrugating mediun Sales Price $145.00 per hundred boxes 205.00 per hundred boxes Expected Inventory January 1 $136,500 30,500 151,000 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. 15,500 boxes 25,500 boxes 16,000 pounds 7,000 pounds 25 pounds 15 pounds 0.40 hour Desired Ending Inventory December 31 10,500 boxes 20,500 boxes 65 pounds 25 pounds 0.80 hour 6,000 pounds 12,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.
Expert Answer:
Answer rating: 100% (QA)
Sales Budget Sales Budget for FreshPak Corporation C 4750 boxes 14500 per hundred boxes C 6887500 P 4750 boxes 20500 per hundred boxes P 9737500 Total ... View the full answer
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078110917
9th edition
Authors: Ronald W. Hilton
Posted Date:
Students also viewed these accounting questions
-
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...
-
Edgeworth Box 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...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Rainbow manufactures wooden backyard playground equipment. Rainbow estimated $1,785,000 of manufacturing overhead and $2,100,000 of direct labour cost for the year. After the year was over, the...
-
What is the structure of the a-keto acid formed by transamination of each of the following amino acids? (a) Threonine (b) Phenylalanine (c) Asparagine
-
A piece of transparent plastic is molded into the shape of a converging lens, but it is hollow inside and has only a thin plastic wall. If immersed in water, would this air-filled lens act as a...
-
For accounting purposes, how are liabilities defined?
-
Employee earnings records for Cornelius Company reveal the following gross earnings for four employees through the pay period of December 15. For the pay period ending December 31, each employee??s...
-
Accounts payable 3 , 1 8 6 . 0 0 5 , 9 8 7 . 0 0 Accounts receivable 6 , 8 8 2 . 0 0 8 , 9 6 2 . 0 0 Accruals 5 , 6 3 4 . 0 0 6 , 1 2 1 . 0 0 Additional paid in capital 1 9 , 5 9 4 . 0 0 1 3 , 8 0 0...
-
From Exercise 10A-3, prepare a schedule of accounts payable and verify that the total of the schedule equals the amount in the controlling account. Exercise 10A-3:
-
On January 1, Costa Rica Tours Inc. lent money to the Yoga Alliance Group (YAG). The details of this transaction are as follows: Amount of cash Costa Rica Tours lent to YAG Note receivable face value...
-
For the class project, apply the MoSCow prioritisation technique to the requirements you have identified at the initiation stage of the project. What does this tell you about the requirements that...
-
(a) Break into small groups and identify at least two real-life examples of projects in which: (i) The scope and technology are well known. (ii) The scope is well known, but the technology is less...
-
A thin lens is made of material that has an index of refraction of 1. 50 . When an object \(10 \mathrm{~mm}\) tall is placed \(500 \mathrm{~mm}\) away from the lens, an upright image \(21.5...
-
For the class project (or a project of your choosing), consider how the Scrum approach would be applicable (or not) to the project. Create a list of eight points as to why you believe Scrum 'would'...
-
Consider the Scrum roles and identify who would take on these roles if your project was to be managed with the Scrum approach. Comment on whether they have the correct skills to take on the role you...
-
Given the unbalanced equation below: When the chemical equation below is balanced with the lowest whole number coefficients, what will the coefficient in front of CH4(g) be? CH4(g) + O2(g) --> CO2(g)...
-
The Cholesterol Level data sets give cholesterol levels of heart attack patients. Cholesterol measures are taken 2, 4, and 14 days aft er a patient has suffered a heart attack. Is there a significant...
-
Refer to the information given in Case 8-31 for Lehighton Chalk Company. Selected information from Lehighton's year-end balance sheets for its first two years of operation is as follows: Required: 1....
-
Explain the phrase price-led costing?
-
Warriner Equipment Company, which is located in Ontario, Canada, manufactures heavy construction equipment. The company's primary product, an especially powerful bulldozer, is among the best produced...
-
Prove or disprove. A directed graph is a tree if and only if it is quasi-connected and has no directed cycles.
-
Would the directed spanning tree algorithm also find an undirected spanning tree if the given graph was connected and undirected? Explain.
-
Because of the continuity assumption, it is impossible to prepare meaningful financial statements for a bankrupt company.
Study smarter with the SolutionInn App