Cheyenne 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, 29,800 bags; quarter 2, 43,700 bags. Selling price is $63 per bag. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarc at $1.75 per pound. 3. Desired inventory levels: 2. Type of Inventory January 1 April 1 July 1 Snare (bags) 8,200 12,100 18,500 Gumm (pounds) 9,500 10,100 13,200 Tarc (pounds) 14,100 20,300 25,200 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 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 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 Tacc shows the cost of Tarc purchases to be $298,000 in quarter 1 and $423,500 in quarter 2. Direct Materials BudgetGumm For the Six Months Ending Quarter Six Months 1 2 Units to be produced Direct Materials per Unit Total Pounds Needed for Pr Add Desired Ending Direct Mate Total Materials Required Less Beginning Direct Materials Direct Materials Purchases Cost per Pound $ $ Total Cost of Direct Materia $ $ $ Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minute CHEYENNE COMPANY Direct Labor Budget For the Six Months Ending Quarter Six Months 1 2 Units to be Produced Direct Labor Time per Unit Total Required Direct Labor Direct Labor Cost per Hour $ Total Direct Labor Cost $ $ $ $ Prepare the budgeted multiple-step income statement for the CHEYENNE COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2017 Sales $ Cost of Goods Sold Gross Profit Selling and Administrative Expenses Income from Operations Income Tax Expense > Net Income / (Loss) >