Problem 13-1 The following data are available for preparing budgets for Snare for the first 2 quarters of 2017 Sales: quarter 1, 29,800 bags; quarter 2, 42,400 bags. Seling price is 962 per bag. 1. nds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.50 per pound each bag of Snare requires 5 pounds at a 3. Desired inventory levels January 1 April 1 uly 1 100 12,100 18,100 9,500 10,300 13,100 Type of Iventory Snare (bags) Gumm (pounds) Tarr (pounds) 14,100 20,10025,200 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. 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 ove shows the cost of Tarr purchases to be $303,000 in quarter 2 and 3422,500 in quarter 2. head budget shows expected costs to be 125% of direct labor cost, and (2) the direct materials budget for Tarr Prepare the sales budget. BLUE COMPANY Sales Budget Quarter Six Months 2 Expected unit sales Unit selling price Total sales Prepare the production budget. BLUE COMPANY Production Budget Quarter Six Months 2 INK TO TEXTLINK TO TEXT VIDEO: SIMI Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 5 I .70.) BLUE COMPANY Direct Materials Budget-Gumm Quarter Six Months 2 Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 BLUE COMPANY Direct Labor Budget Quarter Six Months 2 Prepare the selling and administrative expense budget. BLUE COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2017 Quarter Six Months 2 Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal e.g. 1,255.) BLUE COMPANY if wou ould like to Show Work for this question: pen Sh