Cook 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 2017.1. sales: quarter 1, 40,000 bags; quarter 2, 56,000 bags. selling price is $60 per bag.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 $1.5 per pound.3. desired inventory levels: type of inventoryjanuary 1april 1july 1snare (bags) 8,000 15,000 18,000gumm (pounds) 9,000 10,000 13,000tarr (pounds) 14,000 20,000 25,0004. 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 be 15% of sales plus $175,000 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 $297,000 in quarter 1 and $439,500 in quarter 2.cook farm supply company manufactures and sells see the pictures