Carla Vista 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 2,42,200 bags. Selling 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 $1.50 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8.200 12,200 18,400 9.300 10,300 13,200 Gumm (pounds) Tarr (pounds) 14,500 20,300 25,300 4. 5. 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 $179,000 per quarter. Interest expense is $100,000. 6. 7. 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 $303,000 in quarter 1 and $426,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) (a) Prepare the sales budget. CARLA VISTA FARM SUPPLY COMPANY Sales Budget Quarter Six Months 1 2 $ $ $ $ $ Prepare the production budget. CARLA VISTA FARM SUPPLY COMPANY Production Budget Quarter 1 2 >