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 2,43,400 bags. Selling price is $62 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 8.400 9,400 14,300 April 1 12,300 10,500 20,400 July 1 18,300 13,500 25.100 4 5. 6. 7. 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 $178,000 per quarter, Interest expense is $100,000 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 Prepare the budgeted multiple-step income 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 . $