Shamrock Farm Supply Company manufactures and sells a fertilizer called Snare. The following data are available preparing budgets for Snare for the first two quarters of 2022. 1. Sales: Quarter 1, 27,000 bags; quarter 2, 41,000 bags. Selling price is $58 per bag. 2. Direct materials: Each bag of Snare requires 4 kg of Gumm at $4.00 per kilogram and 6 kg of Tarr at $1.50 per kilogram. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 7,000 11,000 19,000 Gumm (kg) 10,000 10,000 15,000 Tarr (kg) 16,000 21,000 25,000 4. Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $16.00 per hour. 5. The company expects selling and administrative expenses to be 15% of sales plus $176,000 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 $299,000 in quarter 1 and $444,000 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.