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

4)Number of units produced For C:Units sales +ending FG-Beginning FG

           = 460000+7500-12500

             = 455000

BoxP:460000+17500-22500=455000

**please provide details for direct material budget and overhead budget for calculating cost of goods sold .

Box C Box P Total units produced 455000 455000 Direct labor required per unit .20 /100 .40/100 Direct labor required for production (total) 455000*.20/100=910 455000*.40/100=1820 2730 Direct labor rate 19 Total direct labor cost [2730*19] 51870

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