Novak Farm Supply Company manufactures and sells a fertilizer called Snare. The following data are available for preparing budgets for Snare for the first two quarters of $2022.$

Sales: Quarter $1,30,000$ bags; quarter $2,43,000$ bags. Selling price is $$60$ per bag.

Direct materials: Each bag of Snare requires $4kg$ of Gumm at $$4.d$ per kilogram and $6kg$ of Tarr at $$1\mathrm{.}50$ per kilogram.

Desired inventory levels:

$\backslash$table$[[$Type of Inventory,January $1,$April $1,$July $1],[$Snare $($bags$),9,000,14,000,20,000],[$Gumm $($kg$),8,000,11,000,12,000],[$Tarr $($kg$),13,000,21,000,23,000]]$

Direct labour: Direct labour time is $15$ minutes per bag at an hourly rate of $$12\mathrm{.}00$ per hour.

The company expects selling and administrative expenses to be $15\%$ of sales plus $$174,000$ per quarter.

It expects income taxes to be $30\%$ of income from operations.