Tilger Farm Supply Company manufactures and sells a fertilizer called Snare. The following data are available for preparing budgets for Snare for the first two quarters of 2020.

1.	Sales: Quarter 1, 27,000 bags; quarter 2, 40,000 bags. Selling price is $61 per bag.
2.	Direct materials: Each bag of Snare requires 4 kg of Gumm at $4 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			13,000		19,000
	Gumm (kg)		9,000			9,000		14,000
	Tarr (kg)		13,000			20,000		26,000

4.	Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $14 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 $296,000 in quarter 1 and $439,000 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.

1.

Prepare the direct labour budget by quarters. (Round direct labour hours per unit to 2 decimal places, e.g. 0.15.)

TILGER FARM SUPPLY COMPANY Direct Labour Budget For the Six Months Ending June 30, 2020
		Quarter				Six
		1		2		Months
Direct labour cost per hourDirect labour hours per unitTotal cost of direct labourTotal required for productionUnits to be produced
Direct labour cost per hourTotal cost of direct labourUnits to be producedTotal required for productionDirect labour hours per unit
Total required for productionDirect labour cost per hourTotal cost of direct labourUnits to be producedDirect labour hours per unit
Total cost of direct labourUnits to be producedDirect labour cost per hourDirect labour hours per unitTotal required for production		$		$		$
Direct labour hours per unitTotal required for productionUnits to be producedDirect labour cost per hourTotal cost of direct labour		$		$		$

2.

Prepare the direct materials budget by quarters.

TILGER FARM SUPPLY COMPANY Direct Materials BudgetGumm For the Six Months Ending June 30, 2020
	Quarter					Six
		1		2		Months
Direct materials per unitTotal materials requiredUnits to be producedDesired ending inventoryBeginning inventoryTotal required for productionCost per kilogramDirect materials purchasesTotal cost of materials purchases
Direct materials purchasesDesired ending inventoryTotal materials requiredTotal required for productionBeginning inventoryCost per kilogramTotal cost of materials purchasesDirect materials per unitUnits to be produced
Total materials requiredDirect materials per unitDesired ending inventoryUnits to be producedBeginning inventoryDirect materials purchasesCost per kilogramTotal cost of materials purchasesTotal required for production
AddLess : Total required for productionCost per kilogramTotal materials requiredTotal cost of materials purchasesDesired ending inventoryUnits to be producedDirect materials per unitBeginning inventoryDirect materials purchases
Units to be producedBeginning inventoryDirect materials purchasesTotal cost of materials purchasesCost per kilogramDirect materials per unitTotal required for productionDesired ending inventoryTotal materials required
LessAdd : Total cost of materials purchasesDirect materials per unitTotal required for productionCost per kilogramDirect materials purchasesDesired ending inventoryUnits to be producedTotal materials requiredBeginning inventory
Beginning inventoryDirect materials purchasesTotal materials requiredCost per kilogramDirect materials per unitTotal required for productionTotal cost of materials purchasesUnits to be producedDesired ending inventory
Direct materials purchasesUnits to be producedTotal required for productionDesired ending inventoryCost per kilogramTotal materials requiredTotal cost of materials purchasesDirect materials per unitBeginning inventory		$		$		$
Units to be producedTotal cost of materials purchasesDesired ending inventoryTotal required for productionDirect materials per unitTotal materials requiredBeginning inventoryDirect materials purchasesCost per kilogram		$		$		$