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 2020. 1 Sales: quarter 1,29,200 bags; quarter 2, 43,200 bags Selling price is $61 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 $1.50 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bag) 8,400 12.200 18,200 Gumm (pounds) 9.200 10.200 13.500 Tarr (pounds) 14,300 20,400 25.400 4. 5 Direct labor direct labor time is 15 minutes per bag at an hourly rate of 516 per hour Selling and administrative expenses are expected to be 15% of sales plus 5180,000 per quarter Interest expense is $100,000 7 Income taxes are expected to be 30% of income before income taxes