Problem 23-1A Cook 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 2017 1. Sales: quarter 1, 28, 100 bags; quarter 2, 43,400 bags. Selling price is $63 per bag Direct materials each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: April 1 Type of Inventory July 1 January 1 Snare (bags) 8,100 12,500 18,300 Gumm (pounds) 10,200 13,100 9,100 (pounds) 14,200 20,500 25,500 Tarr 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 $177,000 per quarter. 6. Interest expense is $100,000. 7. Income taxes are expected to be 30% of income before income taxes. (1) the manufacturing overhead budget show s expected costs to be 125% of direct labor Your assistant has prepared two budgets cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $303,000 in quarter 1 and $423,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr