Problem 9-1A (Part Level Submission) 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, 28,600 bags; quarter 2, 43,400 bags. Selling price is $62 per bag. 2. Direct materials: each bag of Snare requires 5 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: Type of Inventory Snare (bags) Gumm (pounds) January 1 April 1 July 1 8,400 12,300 18,300 9,40010,500 13,500 14,300 20,400 25,100 Tarr (pounds) 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour 5. Selling and administrative expenses are expected to be 15% of sales plus$ 178,000 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 Ta shows the cost of Tarr purchases to be $299,000 in quarter 1 and $426,500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tar) ? (a) ?Your answer is correct. :46 PM o search