Wildhorse 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 $2022.$

Sales: quarter $1,28,600$ bags; quarter $2,42,800$ bags. Selling price is $$63$ per bag.

Direct materials: each bag of Snare requires $5$ pounds of Gumm at a cost of $$4$ per pound and $6$ pounds of Tarr at $$1\mathrm{.}5$ per pound.

Desired inventory levels:

$\backslash$table$[[$Type of Inventory,January $1,,$April $1,$July $1],[$Snare $($bags$),8,100,12,100,18,200,],[$Gumm $($pounds$),9,300,10,300,13,400,],[$Tarr $($pounds$),14,300,20,400,25,200,]]$

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 $$177,000$ per quarter.

Interest expense is $$100,000.$

Income taxes are expected to be $20\%$ of income before income taxes.