Problem 9-39 Preparation of Master Budget (LO 2, 3, 4) 1. Total sales revenue: $1,650,000 4. Total direct-labor cost:

■ Problem 9–39Preparation of Master Budget(LO 2, 3, 4)1. Total sales revenue:$1,650,0004. Total direct-labor cost:$66,825Edgeworth Box Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.Type of BoxPDirect material required per 100 boxes:Corrugating medium ($.15 per pound)20 pounds 30 poundsPaperboard ($.30 per pound)30 pounds 70 poundsDirect labor required per 100 boxes ($18.00 per hour).25 hour .50 hourThe following manufacturing-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Manufacturing overhead is applied on the basis of direct-labor hours.Indirect material15,750Indirect labor75,000Utilities37,500Property taxes27,000Insurance24,000Depreciation43,500Total$ 222,750The following selling and administrative expenses are anticipated for the next year.Salaries and fringe benefits of sales personnel $112,500Advertising22,500Management salaries and fringe benefits135,000Clerical wages and fringe benefits39,000Miscellaneous administrative expenses6,000Total315,000The sales forecast for the next year is as follows:Sales Volume Sales PriceBox type C500,000 boxes$135 per hundred boxesBox type P500,000 boxes 195 per hundred boxesThe following inventory information is available for the next year.Expected InventoryDesired Ending InventoryJanuary 1December 31Finished goods:Box type C10,000 boxes 5,000 boxesBox type P20,000 boxes 15,000 boxesRaw material:Corrugating medium5,000 pounds 10,000 poundsPaperboard15,000 pounds 5,000 poundsRequired: Prepare a master budget for Edgeworth Box Corporation for the next year. Assume an income tax rate of 35 percent. Include the following schedules.1. Sales budget.2. Production budget.3. Direct-material budget.4. Direct-labor budget.5. Manufacturing-overhead budget.6. Selling and administrative expense budget.7. Budgeted income statement. ( Hint: To determine cost of goods sold, first compute the manufacturing cost per unit for each type of box. Include applied manufacturing overhead in the cost. Carry these calculations to three decimal places.)