or preparing budgets for Snare for the first 2 quarters of 2017 1. Sales: quarter 1, 29,400 bags; quarter 2, 42,200 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 & pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: dy Gumm (pounds) Tarr (pounds) 8,100 12,200 18,500 9,30010,100 13,100 14,100 20,200 25,200 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour 5. Selling and administrative expenses are expected to be 15% of sales plus $179,000 per quarter. Tarr shows the co r assistant has prepared t o budgets: (1) the manufacturing overhead budget shows expected costs to be 125% of direct labor cost, and (2) the direct materials budget