CALCULATOR STA URCES Problem 21-1A 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 2017. 1. Sales: quarter 1, 28,200 bags; quarter 2, 42,300 bags. Selling price is $63 per bag. 2 Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.75 per pound. 3. Desired inventory levels: Type of Inventory Snare (bags) January 1 April 1July 1 Gumm (pounds) Tarr (pounds) 8,200 12,20018,100 9,100 10,400 13,300 14,500 20,400 25,200 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 $180,000 per quarter. 6. Interest expense is $100,000. 7, Income taxes are expected to be 30% of income before income taxes. Your assstant 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 $422,500 in quarter 2. E] Your answer is correct. Prepare the sales budget