Cook Farm Supply Company manufactures and seils a pesticide called Snare. The following data are available for preparing budgets for Snare for the rst 2 quarters of 2020. 1. Sales: quarter 1, 23.600 bags; quarter 2. 42.300 bags. Selling price is $61 per bag. 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} 8,300 12,300 18,200 Gumm {pounds} 9,100 10,300 13,300 Tarr l(pounds) 14,500 20,300 25,400 Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. 4. 5. Selling and administrative expenses are expected to be 15% of sales plus $177,000 per quarter. 6. Interest expense is $ 100,000. 7. Income taxes are expected to be 30% of income before income taxes