Cook Farm Supyly Company manufactures and sells a pesticide called Snare. The following data are available for preparirys budgets for Snare for the first 2 quarters of 2020. 1. Salen quarter 1,28,200 bagsi quarter 2,43,600 bags. Selling price is $63 per bag 2. Direct materials 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. Selling and administrative expenses are expected to be 1596 of sales plus $177,000 per quarter. 6. Interest expense is $100,000. 7. 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 cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $303,000 in quarter 1 and $426,500 in quarte 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) COOK FARM SUPPLY COMPANY Budgeted Income Statement For the Quarter Ending June 30, 2020 $