Look 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 2020. 1. 2. Sales: quarter 1.29,400 bags; quarter 2,42,600 bags. Selling price is $63 per bag, Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.75 per pound Desired inventory levels: 3. January 1 April 1 July 1 Type of Inventory Snare (bags) Gumm (pounds) 8,100 12,200 18.100 9,500 10,100 13,200 Tarr (pounds) 14,200 20,500 25,400 4 S. 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 $179,000 per quarter. Interest expense is $100,000 6 Type of Inventory January 1 April 1 July 1 Snare (bags) 8,100 12,200 18,100 Gumm (pounds) 9,500 10,100 13,200 Tarr (pounds) 14,200 20,500 25,400 4. 5. 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 $179,000 per quarter. Interest expense is $100,000 Income taxes are expected to be 30% of income before income taxes. 6. 7. 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 $301,000 in quarter 1 and $426,500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2020 Quarter Six Months 1 2 Expected Unit Sales 29400 42600 72000 179000 $ 179.000 $ 358,000 277,830 $ $ 402.570 402 570 Production Budget Quarter 1 2 colo TOOME (b) The parts of this question must be completed in order. This part will be available when you complete the part above, (c) The parts of this question must be completed in order. This part will be available when you complete the part above