Oriole 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 1,29,800 bags: quarter 2, 43,800 bags. Selling price is $63 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 $1.8 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,200 12,100 18.500 Gumm (pounds) 9.500 10.100 13,200 Tarr (pounds) 14,100 20,300 25,200 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. 5. 6. Selling and administrative expenses are expected to be 15% of sales plus $180,000 per quarter. Interest expense is $100,000. 7. Income taxes are expected to be 20% of income before income taxes. 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 $298,000 in quarter 1 and $423,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) Prepare the sales budget. ORIOLE FARM SUPPLY COMPANY Sales Budget > $ 1 Quarter 2 $ $ $ $ $ Six Months Prepare the production budget. ORIOLE FARM SUPPLY COMPANY Production Budget eTexthank and Me Quarter 1 2 Six Months Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, eg. 52.70) ORIOLE FARM SUPPLY COMPANY Direct Materials Budget-Gumm S Quarter Six Months 2