Problem 13-1 (Part Level Submission) Cheyenne Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017. 1. Sales: quarter 1, 29,800 bags; quarter 2, 43,700 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: January 1 April 1 July 1 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) 8,200 12,100 18,500 9,50010,100 13,200 14,100 20,300 25,200 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 per hour s. selling and administrative expenses are expected to be 15% or sales plus Sied,000 per quarter. 6. Interest expense is $100,000. 7, Income taxes are expected to be 30% of income before income taxes budget shows expected costs to be 125% of direct labor cost, and (2) the direct materials budget for Tarr shows the cost Your assistant has prepared two budgets (1) the manufacturng overhead of Tarr purchases to be $298,000 in quarter 1 and $423,500 in quarter 2 Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations CHEYENNE COMPANY Budgeted Income Statement Click if you would like to Show Work for this