Required information [The following information applies to the questions display

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Required information [The following information applies to the questions displayed belowj 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 ($0.36 per pound) Corrugating medium ($0.18 per pound) 40 pounds 30 pounds 80 pounds 40 pounds Direct labor required per 100 boxes ($18.00 per hour) 0.30 hour 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 485,000 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 $ 14,700 76,200 51,000 34,000 27,000 59,000 $261,900

Explanation / Answer

2.

FreshPark Corporation

Production budget

For the next year

4.

FreshPark Corporation

Direct labour budget

For the next year

Box C Box P Sales 490,000 490,000 Add : Desired ending inventory of finished goods 13,500 23,500 Total units needed 503,500 513,500 Less : Beginning inventory of finished goods (18,500) (28,500) Production requirements 485,000 485,000

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