Home Read, Study&Practice Gradebook ORION Downloadable eTextook Problem 9 1A (Part Level Submission) Cook Farm Supply Company manufactures and sells a pesticide called Snare. The tollowing data are available tor preparing budgets for Snare for the tirst 2 quarters of 2017 Problem 9-IA (Pa Level Submissia 1. Sles: quarter 1, 28,500 hags; qurt , 47,0O bags. Slling price is 6.3 pe hag 2. Direct materiols: cach bag of Snare requires 5 pounds of Gumm at a cost of $3.8 per pound and G pounds of Tarr at 51.50 per pound 3. Desired inventory levels: L Fxertise 9-14 Review Score Typ of Iivento April I Review Results by Study Qblective Snare (bags) Gupaunds) Tarr (pounds) ,100 9,300 14,300 12,1001,200 10,30013,400 20,400 25,200 1. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $11 per hour. 5. Selling and administrative expenses ar? expected to be 15% of sales plus $177,000 per quarter. 6, Interest expensc 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% o direct labor cost and 2 the direct materials budget or Tarr shows the cost o Tarr purchases to be $299,000 in quarter 1 and S427,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tar.)