Zelmer 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 2012. 1. Sales: Quarter 1, 29,000 bags; quarter 2, 43,000 bags. Selling price is $62 per bag. 2. Direct materials: Each bag of Snare requires 4 pounds of Gumm at a cost of $5 per pound and 6 pounds of Tarr at $1.30 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,300 12,500 18,300 Gumm (pounds) 9,100 10,100 13,000 Tarr (pounds) 14,500 20,500 25,000 4. Direct labor: Direct labor time is 15 minutes per bag at an hourly rate of $14 per hour. 5. Selling and administrative expenses are expected to be 15% of sales plus $180,000 per quarter. 6. Income taxes are expected to be 30% of income from operations. Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to be 160% of direct labor cost. (2) The direct materials budget for Tarr shows the cost of Tarr purchases to be $266,760 in quarter 1 and $386,490 in quarter 2. Complete the budgeted income statement for the first 6 months and all required supporting budgets by quarters. (Note: Use variable and fixed in the selling and administrative expense budget). (Round unit cost to 2 decimal places e.g. 25.75. Round other answers to 0 decimal places, e.g. 125. Show time as a percent e.g. 45 minutes is .75. Enter all amounts as positive amounts and subtract where necessary.) ZELMER FARM SUPPLY COMPANYDirect Labor Budget For the Six Months Ending June 30, 2012 Quarter Six 1 2 Months Units to be produced Direct labor time (hours) per unit Total required direct labor hours Direct labor cost per hour $ $ Total direct labor cost $ $ $