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 2022 1. 2 Sales: quarter 1.40,000 bags quarter 2,56,000 bags Selling price is $60 per bag. Direct materials: each bagbr Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarrat 51.5 per pound. Desired inventory levels: 3 Question 5 of 6 Type of Inventory January 1 April 1 July 1 Snare (bags) 8,000 15,000 18,000 Gumm (pounds) 9,000 10,000 13,000 Tarr (pounds) 14,000 20,000 25,000 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 $175,000 per quarter. Interest expense is $100,000. Income taxes are expected to be 20% of income before income taxes. 6. 7. 22C Mo 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 $297,000 in quarter 1 and $439,500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter Month Direct Labor Budget Q 2 Months $ Prepare the selling and administrative budget COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget SM $