60.1K

Verified Solution

Link Copied!

Gannon 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 ar labor requirements Type of Box Direct material required per 100 boxes Paperboard (S.20 per pound) Corrugating medium (S.10 per pound) Direct labor required per 100 boxes ($12.00 per hour) 25 hour 70 pounds 30 pounds hour 30 pounds 20 pounds The following production-overhead costs are anticipated for the next year. The predetermined overhead . based on a production volume of 495,000 units for cach type of box. Production overhead is applied on t basis of direct-labor hours Indirect material S 10,500 50,000 25,000 Property taxes 18,000 16,000 29,000 5148,500 Indirect labor Utilities Insurance Total The following selling and administrative expenses are anticipated for the next year Salaries and fringe benefits of sales personnel Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total 75,000 15,000 90,000 26,000 4,000 $210,000 The sales forecast for the next year is as follows: Sales Volume Sales Price ox type C 500,000 boxes S 90.00 per hundred boxes ox type P 500,000 boxes 130.00 per hundred boxes

Answer & Explanation Solved by verified expert

See Answer