Pharoah 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 Sales: quarter 1,29,400 bags: quarter 2,42,600 bags. Selling price is $63 per bag 2 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. 3 Desired inventory levels: 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. 6. Interest expense is $100,000. 7. Income taxes are expected to be 30% of income before income taxes. Tarr (pounds) 14,200 20,500 25,400 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. 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 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.) (a) Prepare the sales budget. PHAROAH FARM SUPPLY COMPANY Sales Budget $ $ Prepare the production budget. Quarter Six Months Prepare the production budget. PHAROAH FARM SUPPLY COMPANY Production Budget Quarter 1 2 eTextbook and Media Save for Later Attempts: 0 of 3 used Submit