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shift ctrl Blossom Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the
shift ctrl Blossom 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 2022. tab Sales: quarter 1, 28,000 bags; quarter 2, 42,000 bags. Selling price is $61 per bag. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: 1. 2. Type of Inventory January 1 Snare (bags) Gumm (pounds) Tarr (pounds) 4. 5. 6. 7. esc caps lock fn 1 8,100 G A April 1 9,100 10,100 14,100 20,100 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 Tarr shows the cost of Tarr purchases to be $298,000 in quarter 1 and $422,500 in quarter 2. 12,100 Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $176,000 per quarter. Interest expense is $100,000. Income taxes are expected to be 20% of income before income taxes. 2 Z W S F3 # 3 July 1 X 18,100 alt 13,100 25,100 AII E Q Search F4 D $ 4 C R F LL % 65 V T 6 B & 7 H FB U N 19 8 J M prt sc ( 9 K F10 home alt ) O F11 L P Question Accounting V Question Accounting Question Accounting C Viewing C Accounting Question Accounting D Question Accounting D Question Accounting D Question Accounting D end Question Accounting M F12 etri 0
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