Extracted text: Help | System Announcements = 05:39 PM / Remaining: 47 min. CALCULATOR PRINTER VERSION ( BACK NEXT Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are avallable for preparing budgets for Snare for the first 2 quarters of 2020. 1. Sales: quarter 1, 28,200 bags; quarter 2, 42,400 bags. Selling price is $63 per bag. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at 2. $1.75 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,200 12,200 18,100 Gumm (pounds) 9,100 10,400 13,300 Tarr (pounds) 14,500 20,400 25,200 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per 5. Selling and administrative expenses are expected to be 15% of sales plus $180,000 per quarter. 6. Interest expense is $100,000. 7. Income taxes are expected to be 30% of income before income taxes. 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 $301,000 in quarter 1 and $422,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) MacBook Air
Extracted text: Prepare the dired materias budget. (Round Cost per pound answrs to 2 decimal places, e.g. 52.70.) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter Six Months 1. Prepare the direct labor budget. (Enter Direct labor time per unlt in proportion to hours, eg. for 45 mki COOK FARM SUPPLY COMPANY Direct Labor Budget Quarter Six Months Prepare the selling and administrative expense budget. COOKKEN 4EDMBANLY