Required information The following information applies to the questions displaye

Question

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 Tvpe of Box Direct material required per 100 boxes: Paperboard ($0.38 per pound) Corrugating medium ($0.19 per pound) 40 pounds 30 pounds 80 pounds 40 pounds Direct labor required per 100 boxes ($19.00 per hour) 0.20 hour 0.40 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 455,000 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 S 13,800 82,710 42,000 28,000 21,000 50,000 237,510

Explanation / Answer

Statement Showing Sales Budget Box C Box P Total Sales ( in units) 460000 460000 920000 Sales ($/Unit) $1.30 $1.90 Sales Revenue $598,000 $874,000 1472000 Statement Showing Production Budget Box C Box P Sales 460000 460000 Desired Ending inventory 7500 17500 Total Unit Needed 467500 477500 Less: Beg. Inventory -12500 -22500 Production required 455000 455000 Statement Showing Raw material Budget- Paper Board Box C Box P Total Production Required (inUnit) 460000 460000 Raw Material/Box 0.4 0.8 RM for Production ( in Pound) 184000 368000 552000 Desired Ending inventory 4500 Total Rawmaterial needed (in Pound) 556500 Beg. RM Inventory -14500 RM to be purchased 542000 Price/Pound $0.38 Cost of Purchase $205,960.00 Statement Showing Raw material Budget- Corrugating Box C Box P Total Production Required (Units)            460,000            460,000 Raw Material/Box                   0.30                   0.40 RM for Production (in Pound)            138,000            184,000            322,000 Desired Ending inventory                10,500 Total Rawmaterial needed (in Pound)            332,500 Beg. RM Inventory              (5,500) RM to be purchased            327,000 Price/Pound $0.19 Cost of Purchase $62,130.00

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.