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Please help solve this! 1. Sales: Quarter 1,30,000 bags; quarter 2,43,000 bags. Selling price is $60 per bag. 2. Direct materials: Each bag of Snare

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Please help solve this!

1. Sales: Quarter 1,30,000 bags; quarter 2,43,000 bags. Selling price is $60 per bag. 2. Direct materials: Each bag of Snare requires 4kg of Gumm at $4.00 per kilogram and 6kg of Tarr at $1.50 per kilogram. 3. Desired inventory levels: 4. Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $12.00 per hour. 5. The company expects selling and administrative expenses to be 15% of sales plus $174,000 per quarter. 6. It expects income taxes to be 30% of income from operations. Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to be 150% of direct labour cost. (2) The direct materials budget for Tarr shows the cost of Tarr purchases to be $295,000 in quarter 1 and $437,000 in quarter 2. Prepare the following operating budgets by quarters. (Note: Classify items as variable and fixed in the selling and administrative expenses budget.) Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr. Prepare the sales budget by quarters. Prepare the production budget by quarters. Prepare the direct labour budget by quarters. (Round direct labour hours per unit to 2 decimal places, e.g. 0.15.)

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