PROBLEM 9-43 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 C P Direct material required per 100 boxes: Paperboard ($.20 per pound) …………………………………………………………………………….. 30 pounds 70 pounds Corrugating medium ($.10 per pound) ………………………………………………………………… 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) ……………………………………………….. .25 hour .50 hour The following manufacturing-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. Manufacturing overhead is applied on the basis of direct-labor hours. Indirect material ……………………………………………………………………………………………………………………… $ 10,500 Indirect labor …………………………………………………………………………………………………………………………….. 50,000 Utilities …………………………………………………………………………………………………………………………………….. 25,000 Property taxes …………………………………………………………………………………………………………………………… 18,000 Insurance ………………………………………………………………………………………………………………………………….. 16,000 Depreciation ……………………………………………………………………………………………………………………………… 29,000 Total …………………………………………………………………………………………………………………………………….. $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel ……………………………………………………………………………….. $ 75,000 Advertising ………………………………………………………………………………………………………………………………. 15,000 Management salaries and fringe benefits …………………………………………………………………………………………. 90,000 Clerical wages and fringe benefits ………………………………………………………………………………………………….. 26,000 Miscellaneous administrative expenses ……………………………………………………………………………………………… 4,000 Total …………………………………………………………………………………………………………………………………….. $210,000 The sales forecast for the next year is as follows: Sales Volume Sales Price Box type C …………………………………………………………………………….. 500,000 boxes $ 90.00 per hundred boxes Box type P …………………………………………………………………………….. 500,000 boxes 130.00 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 Finished goods: Box type C …………………………………………………………………….. 10,000 boxes 5,000 boxes Box type P ……………………………………………………………………… 20,000 boxes 15,000 boxes Raw…

Looking for solution of this Assignment?

WHY CHOOSE US?

We deliver quality original papers

Our experts write quality original papers using academic databases.We dont use AI in our work. We refund your money if AI is detected  

Free revisions

We offer our clients multiple free revisions just to ensure you get what you want.

Discounted prices

All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount

100% originality

We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity.We have ZERO TOLERANCE TO USE OF AI

On-time delivery

We will deliver your paper on time even on short notice or  short deadline, overnight essay or even an urgent essay