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.

1. Sales: quarter 1,28,600bags; quarter 2,42,800bags. Selling price is $61per bag.2.
2. Direct materials: each bag of Snare requires5pounds of Gumm at a cost of $3.80per pound and6pounds of Tarr at $1.50per pound.3.
3. Desired inventory levels:

Types of Inventory Jan. 1 April. 1 July. 1

Snare (bags) 8,300 12,300 18,200

Gumm (pound) 9,100 10,300 13,300

Tarr (pound) 14,500 20,300 25,400

1. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16per hour.5.
2. Selling and administrative expenses are expected to be 15% of sales plus $177,000per quarter.6.
3. Interest expense is $100,000.7.
4. 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 $303,000in quarter 1 and $423,500in quarter 2.

a. Prepare the direct materials budget.

b. Prepare the direct labor budget.

c. Prepare the selling and administrative expense budget.