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 2020. Sales: quarter 1, 28,600 bags quarter 2. 42,800 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 ano pounds of Tarr at $1.50 per pound Desired inventory levels 1 2. 3 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds! January 1 8.300 9.100 14,500 April 1 12.300 10,300 20,300 July 1 18.200 13,300 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 $177,000 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 budetshows expected costs to be 125% or 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 5423.500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Pare! estion 3 OT 5 (c) Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermedias and final answer to 0 decimal places, eg. 1.255.) COOK FARM SUPPLY COMPANY Budgeted Income Statement eTextbook and Media