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 1,28,200 bags; quarter 2,43,600 bags. Selling price is $63 per bag. 2. Dirnct mater ials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.75 per pound. 3. Desired inventory levels: 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. 5. Seling 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 30x 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 $303,000 in quarteri 1 and $426,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) Prepare the sales budget. Prepare the sales budget. Prepare the peoduction budget. Question 1 of 6 > 140 Production budget Quarter 1 2 Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, eg. 5270J Question 1 of 6 140 1. uarter Six. Months Prepara the direct labor budget. (Enter Direct labor time per unit in proportion to houm, eg for 45 minutes the proportion will be a.75.) Prepare the selling and administrative expense budget. Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermedlote calculatlons to 2 decimal ploces and final arswer to O decimal places, es. 1,255J