21-1A Cook Farm Supply Company manufactures and sells a pesticide lowing data are available for preparing budgets for Snare for the first 2 quarters Sales: quarter 1, 40,000 bags; quarter 2, 56,000 bags. Selling prie is so pe o3,.80 per Direct materials: each bag of Snare requires 4 pounds pound and 6 pounds of Tarr at $1.50 per pound. of Gumm at a cost of $3.80 per 3. Desired inventory levels: Type of Inventorv Snare (bags) Gumm (pounds) Tarr (pounds) January 1 April 1 July1 18,000 13,000 20,000 25,000 8,000 9,000 14,000 15,000 10,000 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 $175,000 per 4. quarter 6. Interest expense is $100,000. 7. Income taxes are expected to be 30% of income before income taxes. Your assist ant 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 $297,000 in quarter 1 and $439,500 in quarter 2. Instructions Prepare the budgeted multiple-step income statement for the first 6 months and all required operating budgets by quarters. (Note: Use variable and fixed in the selling and administrative expense budget.) Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr