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 1.29,800 bags quarter 2.42.400 bags. Selling price is $62 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 Tarrat $1.50 per pound. Desired inventory levels 1. 2 3. Type of Inventory Snare (bags) Gumim (pounds) Tarr (pounds) January 1 8,300 9,300 14,300 April 1 12,400 10,500 20,400 July 1 18.100 13.300 25,400 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 5178.000 per quarter. Interest expense is 5100,000. 6 Type of Inventory Snare (bugs) Gumm (pounds Tart (pounds) January 1 April 1 8,300 12,400 9.300 10,500 14,300 20,400 July 1 18,100 13,300 25,400 5 6. 7. Direct labor direct labor time is 15 minutes per bug at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $178,000 per quarter, Interest expense is $100,000 Income taxes are expected to be 30% of income before income tamen 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 Torshows the cost of Tatr purchases to be $300.000 in quarter 1 and 5426,500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) COOK FARM SUPPLY COMPANY Sales Budget Quarter Six Months 1 2 $ $ $ $ $ Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter 2 Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal ploces es. 52.70) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter 2 Quarter 1 2 > > $ Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, es for 45 minutes the proportion will be 0.75) COOK FARM SUPPLY COMPANY Direct Labor Budget Quarter $ $ Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter 2 $ $ $ Prepare the budgeted multiple stepincome statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to decimal places eg. 1,255.) COOK FARM SUPPLY COMPANY Budgeted Income Statement C C Budgeted Income Statement $