TRUCTOR FULL SCREEN MESSAGE HY INS PRNTER VERSION 1-4 BACK Problem 23-1A Cook Farm Supply Company manufactures and sells a pesticide called Snare. The follow ing data are available for preparing budgets for Snare for the first 2 quarters of 2017. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at 51.50 per p 3. Desired inventory levels: January 1 April 1 July 1 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) 12,100 9,300 10,500 13,100 14,200 20,100 25,100 8,500 18,100 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour 5. Selling and administrative expenses are expected to 6. Interest expense is $100,000. 7, Income taxes are expected to be 30% of income before income taxes. be 15% of sales plus $177,000 per quarter. costs to be 125% of direct labor cost, and (2) the direct materials budget for Tarr Your assistant has prepared two budgets: (1) the manufacturing overhead budget shows expected shows the cost of Tarr purchases to be $301,000 in quarter I and $427,500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)