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 PDirect material required per 100 boxes:Paperboard ($.20 per pound) 30 pounds 70 poundsCorrugating medium ($.10 per pound) 20 pounds 30 poundsDirect labor required per 100 boxes ($12.00 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 material $ 10,500Indirect labor 50,000Utilities 25,000Property taxes 18,000Insurance 16,000Depreciation 29,000Total $148,500The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel $ 75,000Advertising 15,000Management salaries and fringe benefits 90,000Clerical wages and fringe benefits 26,000Miscellaneous administrative expenses 4,000Total $210,000The sales forecast for the next year is as follows: Sales Volume Sales PriceBox type C 500,000 boxes $ 90.00 per hundred boxesBox type P 500,000 boxes 130.00 per hundred boxesThe 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 Desired Ending Inventory January 1 December 31Finished goods:Box type C 10,000 boxes 5,000 boxesBox type P 20,000 boxes 15,000 boxesRaw material:Paperboard 15,000 pounds 5,000 poundsCorrugating medium 5,000 pounds 10,000 poundsRequired: Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 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.)