1 of 2 Current Attempt in Progress -/50 E Blossom Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2022. 1. Sales: quarter 1,28,400 bags: quarter 2,43,800 bags. Selling price is $61 per bag 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.5 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8.500 12,100 18,100 Gumm (pounds) 9.300 10.500 13.100 Tarr (pounds) 14,200 20,100 25.100 Question 1 of 2 < > 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. 5. Selling and administrative expenses are expected to be 15% of sales plus $177,000 per quarter. 6. Interest expense is $100,000. 7. Income taxes are expected to be 20% of income before income taxes. -/50 E Your assistant has prepared two budgets: (1) the manufacturing overhead budget shows expected costs to be 125% of direct labor cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $301,000 in quarter 1 and $427,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr Question 1 of 2 (a) Prepare the sales budget. BLOSSOM FARM SUPPLY COMPANY Sales Budget Quarter Months -150 8840900 Prepare the production budget. BLOSSOM FARM SUPPLY COMPANY Production Budget Quarter -750