Crane 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 $2022.$

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 $$4$ per pound and $6$ pounds of Tarr at $$1\mathrm{.}50$ per pound.

Desired inventory levels:

$\backslash$table$[[$Type of Inventory,January $1,,$April $1,$July $1,],[$Snare $($bags$),,8,400,,12,300,18,300],[$Gumm $($pounds$),9,400,10,500,13,500,,],[$Tarr $($pounds$),14,300,20,400,25,100,,]]$

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 $20\%$ 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 $$299,000$ in quarter $1$ and $$426,500$ in quarter $2.$

$($Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.$)$