Blossom Farm Supply Company manufactures and tells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2020. Sales: quarter 1,29.200 bags quarter 2, 43,200 bags, Selling price is $61 per bag, Direct materials: each bag of Share requires 5 pounds of Gumm at a cost of $3,80 per pound and 6 pounds of Tarrat $1.50 per pound Desired inventory levels: 1. 2 3 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 8,400 9.200 14,300 April 1 12.200 10.200 20,400 July 1 18,200 13,500 25,400 5 6. 7. Direct labor, direct labor time is 15 minutes per bag at an hourly rate of $16 per hour Selling and administrative expenses are expected to be 15% of sales plus $180.000 per quarter. Interest expense is $100,000 Income taxes are expected to be 30% of income before income taxes. 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 $425,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) BLOSSOM FARM SUPPLY COMPANY Direct Labor Budget For the sex Months Ending June 30, 2020 Quarter SIX Months 1 2 1920 e Produced 31000 02 bor Time Hours) per Unit 8250 fuired Direct Labor Hours 12800 $ 14 $ bor Cost per Hour 14 $ $ $ 172200 287700 115500 act Labor Cost Prepare the selling and administrative expense budget. BLOSSOM FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the Quarter Ending June 30, 2020 Quarter Six Monti 2 $ $ Sales $ $ Fixed Expenses Variable Expenses Total Selling and Administrative Expenses Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to O decimal places, e.g. 1.255.) BLOSSOM FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2020 Sales 4416.000 Cost of Goods Sold 2567400 1849000 Gross Profit 1022460 Selling and Administrative Expenses 826540 Income from Operations Interest Expense - 1000000 Income Before Income Tax 726540 Income Tax Expense 217962 Net Income /(Loss) 508578