Cullumber 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 $2025.$

Sales: quarter $1,29,800$ bags; quarter $2,42,400$ bags. Selling price is $$62$ per bag.

Direct materials: each bag of Snare requires $4$ pounds of Gumm at a cost of $$4$ per pound and $6$ pounds of Tarr at $$1\mathrm{.}50$ per

pound.

Desired inventory levels:

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$ for the $2$ quarters.

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 $$300,000$ in quarter $1$ and $$426,500$ in quarter $2.$

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

Prepare the sales budget.

CULLUMBER FARM SUPPLY COMPANY

Sales Budget

For the Six Months Ending June $30,2025$

Expected Unit Sales

Unit Selling Price

$

$

$ Prepare the production budget.

CULLUMBER FARM SUPPLY COMPANY

Production Budget

For the Six Months Ending June $30,2025$ Prepare the direct materials budget. $($Round Cost per pound answers to $2$ decimal places, e$.$g$.52\mathrm{.}70.)$

CULLUMBER FARM SUPPLY COMPANY

Direct Materials Budget$-$GummPrepare the direct labor budget. $($Enter Direct labor time per unit in proportion to hours, e$.$g$.$ for $45$ minutes the proportion will be $0\mathrm{.}75.)$

CULLUMBER FARM SUPPLY COMPANY

Direct Labor Budget