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. 2 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 and 6 pounds of Tarrat $1.50 per pound Desired inventory levels 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 4 5. 6 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. 7 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 quarter 1 and $423.500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, eg. 52.70.) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter 2 > I $ Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, eg for 45 minutes the proportion will be 0.75.) COOK FARM SUPPLY COMPANY Direct Labor Budget Quarter 1 2 > I