Homework Chapter 24 Question 1 of 2 > View Policies 16.67/50 E Show Attempt History Current Attempt in Progress Blossom 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. 1 Sales: quarter 1,28,400 bags: quarter 2.43,800 bags. Selling price is $61 per bag. 2 Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.5 per pound 3 Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8.500 12.100 18.100 Gumm (pounds) 9.300 10,500 13.100 Tarr (pounds) 14,200 20.100 25.100 4 Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $36 per hour 3 Selling and administrative expenses are expected to be 15% of sales plus $177,000 per quarter. 6. loterest expense is $100,000 7 Income taxes are expected to be 20% of income before income taxes