and sells a pesticide called Snare. The following 3 data are available for preparing budgets for Snare for the first 2 quarters of 2017. 1, 40,000 bags; quarter 2, 56,000 bags. Selling price is $60 per bag 5 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per 6 pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: 7 January 1 April July 1 15,000 10,000 14,000 20,000 25,000 8,000 9,000 18,000 13,000 Gumm (pounds) 12Tarr (pounds) 4 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour 15 5. Selling and 16 6. Interest Expense is $100,000. 17 7, Income taxes are expected to be 30% of income before income taxes. 18 Your assistant has prepared two budgets: (1) The s |costs to be 125% of direct labor cost, and (2) The direct materials budget for Tarr shows the cost of Tarr ve expenses are expected to be 15% of sales plus $175,000 per quarter. overhead budget shows expected o be $297,000 in quarter 1 and $439,500 in quarter 2 3 Prepare the budgeted multi-step income statement for the first 6 months and all required operating budgets by 24 quarters. (Note: Use 25 prepare the 26 NOTE: Enter a formula in all yellow cells with a "?" and fixed in the selling and administrative expense budget.) Do not overhead budget or the direct materials budget for Tarr COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2017 Six