NEX CES Problem 9-1A (Part Level Submission) Cook Farm Supply Compeny manufactures and sells a pesticde called Snare. The following data are avalable for preparing budgets for Snare for the first 2 quarters of 2017. 1. Sales: quarter 1, 28,600 bags; quarter 2, 43,400 bags. Selling price is $62 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: udy Type of Inventory January April July 1 Snare (bags) Gumm (pounds) Tarr (pounds) 8,400 12,300 18,300 9,400 10,500 13,500 14,300 20,400 25,100 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour Seling and administrative expenses are expected to be 15% of sales plus $178,000 per quarter. 6. Interest expense 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 budget for Tarr shows the cost of Tarr purchases to be $299,000 in quarter 1 and $426,500 in quarter 2. expectedcosts to be 125% of direct labor cost, and (2) the direct materials (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) Your answer is correct Version 4.24. 4