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

$($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, e$.$g$.52\mathrm{.}70.)$

CULLUMBER FARM SUPPLY COMPANY

Direct Materials Budget$-$Gumm Prepare 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 Prepare the selling and administrative expense budget.

CULLUMBER FARM SUPPLY COMPANY

Selling and Administrative Expense Budget Prepare the budgeted multiple$-$step income statement for the first $6$ months. $($Round intermediate calculations to $2$ decimal places

and final answer to $0$ decimal places, e$.$g$.1,255.)$

CULLUMBER FARM SUPPLY COMPANY

Budgeted Income Statement

$