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 30% of income before income taxes. eTextbook and Media COOK FARM SUPPLY COMPANY Production Budget Quarter Six Months eTextbook and Media Prepare the sales budget. Prepare the production budget. Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate caiculations to 2 decimal places and final answer to 0 decimal ploces, es. 1.255. Prepare the selling and administrative expense budget. Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.8. 52.70.) Cook 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 2020 . 1. Sales: quarter 1,28,200 bags: quarter 2,43,600 bags, Seling price is $63 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.75 per pound. 3. Desired inventorylevels: 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, Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, eg. for 45 minutes the proportion will be 0.75 .)