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 2020. 1.Sales: quarter 1, 29,400 bags; quarter 2, 42,400 bags. Selling price is $63 per bag.2.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 $1.50 per pound.3.Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags)8,50012,20018,500Gumm (pounds)9,30010,40013,100Tarr (pounds)14,40020,50025,300 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 be 15% of sales plus $176,000 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 $298,000 in quarter 1 and $423,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget choose the accounting period  For the Quarter Ending June 30, 2020June 30, 2020For the Six Months Ending June 30, 2020 Quarter Six Months 1 2 Expected unit sales enter a number of units enter a number of units enter a number of units Unit selling price $enter a dollar amount  $enter a dollar amount  $enter a dollar amount  Total sales $enter a total dollar amount  $enter a total dollar amount  $enter a total dollar amount  Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget choose the accounting period  For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020June 30, 2020 Quarter Six Months 1 2 select an opening production budget item  Required Production UnitsDirect Materials PurchasesExpected Unit SalesBeginning Finished Goods UnitsTotal Required UnitsTotal Required Direct Labor HoursDirect Labor Time per UnitTotal Materials RequiredDirect Labor Cost per HourCost per PoundBeginning Direct MaterialsDirect Materials per UnitDesired Ending Direct MaterialsTotal Direct Labor CostTotal Pounds Needed for ProductionDesired Ending Finished Goods UnitsTotal Cost of Direct Materials Purchases enter a number of units enter a number of units select between addition and deduction  AddLess: select a production budget item   Total Cost of Direct Materials PurchasesDirect Materials per UnitDesired Ending Finished Goods UnitsDirect Materials PurchasesRequired Production UnitsTotal Pounds Needed for ProductionDirect Labor Time per UnitDirect Labor Cost per HourTotal Materials RequiredBeginning Direct MaterialsTotal Required UnitsTotal Required Direct Labor HoursCost per PoundBeginning Finished Goods UnitsDesired Ending Direct MaterialsExpected Unit SalesTotal Direct Labor Costenter a number of unitsenter a number of unitsselect a summarizing line for the first part  Expected Unit SalesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionDirect Labor Cost per HourDirect Materials PurchasesTotal Required Direct Labor HoursRequired Production UnitsDesired Ending Finished Goods UnitsBeginning Direct MaterialsCost per PoundBeginning Finished Goods UnitsTotal Required UnitsDirect Materials per UnitTotal Cost of Direct Materials PurchasesDesired Ending Direct MaterialsDirect Labor Time per Unit enter a total number of units for the first part enter a total number of units for the first part select between addition and deduction  AddLess: select a production budget item   Direct Materials PurchasesBeginning Finished Goods UnitsTotal Pounds Needed for ProductionDirect Labor Cost per HourDesired Ending Finished Goods UnitsRequired Production UnitsTotal Required Direct Labor HoursCost per PoundTotal Direct Labor CostDirect Labor Time per UnitDirect Materials per UnitBeginning Direct MaterialsTotal Materials RequiredExpected Unit SalesDesired Ending Direct MaterialsTotal Required UnitsTotal Cost of Direct Materials Purchasesenter a number of unitsenter a number of unitsselect a closing production budget item  Total Required UnitsDirect Labor Time per UnitExpected Unit SalesDirect Materials PurchasesTotal Pounds Needed for ProductionRequired Production UnitsBeginning Finished Goods UnitsDesired Ending Direct MaterialsBeginning Direct MaterialsTotal Materials RequiredDirect Materials per UnitTotal Direct Labor CostDirect Labor Cost per HourDesired Ending Finished Goods UnitsCost per PoundTotal Required Direct Labor HoursTotal Cost of Direct Materials Purchasesenter a total number of unitsenter a total number of unitsenter a total number of units eTextbook and Media Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.) COOK FARM SUPPLY COMPANY Direct Materials Budget—Gumm choose the accounting period  June 30, 2020For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020 Quarter Six Months 1 2 select an opening direct materials budget item  Direct Labor Time (Hours) per UnitExpected Unit SalesBeginning Direct Materials (Pounds)Direct Materials PurchasesCost per PoundDesired Ending Finished Goods UnitsDirect Labor Cost per HourTotal Materials RequiredTotal Direct Labor CostDesired Ending Direct Materials (Pounds)Total Required Direct Labor HoursTotal Cost of Direct Materials PurchasesBeginning Finished Goods UnitsTotal Required UnitsTotal Pounds Needed for ProductionUnits to be ProducedDirect Materials per Unit enter a number of units enter a number of units select an item  Total Materials RequiredTotal Required Direct Labor HoursDirect Materials PurchasesDirect Labor Cost per HourDesired Ending Finished Goods UnitsTotal Cost of Direct Materials PurchasesExpected Unit SalesBeginning Finished Goods UnitsUnits to be ProducedDirect Materials per UnitDirect Labor Time (Hours) per UnitCost per PoundTotal Direct Labor CostBeginning Direct Materials (Pounds)Total Required UnitsTotal Pounds Needed for ProductionDesired Ending Direct Materials (Pounds)enter the amount of poundsenter the amount of poundsselect a summarizing line for the first part  Total Pounds Needed for ProductionTotal Direct Labor CostCost per PoundDirect Labor Time (Hours) per UnitTotal Required UnitsTotal Cost of Direct Materials PurchasesDirect Materials per UnitDirect Materials PurchasesTotal Required Direct Labor HoursBeginning Finished Goods UnitsTotal Materials RequiredExpected Unit SalesUnits to be ProducedDesired Ending Direct Materials (Pounds)Direct Labor Cost per HourBeginning Direct Materials (Pounds)Desired Ending Finished Goods Unitsenter a total amount of pounds for the first partenter a total amount of pounds for the first part select between addition and deduction  AddLess: select an item   Total Pounds Needed for ProductionDirect Labor Time (Hours) per UnitTotal Required UnitsBeginning Finished Goods UnitsExpected Unit SalesUnits to be ProducedTotal Direct Labor CostBeginning Direct Materials (Pounds)Direct Labor Cost per HourDirect Materials per UnitTotal Required Direct Labor HoursDesired Ending Direct Materials (Pounds)Total Cost of Direct Materials PurchasesTotal Materials RequiredDesired Ending Finished Goods UnitsCost per PoundDirect Materials Purchases enter the amount of poundsenter the amount of poundsselect a summarizing line for the second part  Total Cost of Direct Materials PurchasesUnits to be ProducedDirect Labor Cost per HourDirect Labor Time (Hours) per UnitDirect Materials PurchasesDesired Ending Direct Materials (Pounds)Total Required UnitsBeginning Finished Goods UnitsBeginning Direct Materials (Pounds)Total Required Direct Labor HoursExpected Unit SalesTotal Materials RequiredDirect Materials per UnitTotal Direct Labor CostDesired Ending Finished Goods UnitsCost per PoundTotal Pounds Needed for Productionenter a total amount of pounds for the second partenter a total amount of pounds for the second part select between addition and deduction  AddLess: select an item   Beginning Direct Materials (Pounds)Total Materials RequiredDirect Labor Time (Hours) per UnitDirect Materials per UnitDirect Materials PurchasesUnits to be ProducedTotal Direct Labor CostDesired Ending Direct Materials (Pounds)Total Required UnitsDirect Labor Cost per HourExpected Unit SalesTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionBeginning Finished Goods UnitsCost per PoundDesired Ending Finished Goods UnitsTotal Required Direct Labor Hours enter the amount of poundsenter the amount of poundsselect a summarizing line for the third part  Cost per PoundDesired Ending Finished Goods UnitsUnits to be ProducedDirect Labor Cost per HourExpected Unit SalesTotal Cost of Direct Materials PurchasesDirect Labor Time (Hours) per UnitBeginning Finished Goods UnitsBeginning Direct Materials (Pounds)Direct Materials per UnitDirect Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionDesired Ending Direct Materials (Pounds)Total Required Direct Labor HoursTotal Required UnitsTotal Direct Labor Costenter a total amount of pounds for the third partenter a total amount of pounds for the third partselect an item  Cost per PoundTotal Required UnitsDirect Materials per UnitDesired Ending Finished Goods UnitsTotal Pounds Needed for ProductionDesired Ending Direct Materials (Pounds)Direct Labor Cost per HourTotal Materials RequiredTotal Direct Labor CostDirect Labor Time (Hours) per UnitBeginning Direct Materials (Pounds)Expected Unit SalesDirect Materials PurchasesUnits to be ProducedTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursBeginning Finished Goods Units$enter a dollar amount $enter a dollar amount select a closing direct materials budget item  Total Required UnitsDesired Ending Finished Goods UnitsDirect Materials per UnitDirect Labor Cost per HourExpected Unit SalesUnits to be ProducedTotal Pounds Needed for ProductionTotal Materials RequiredTotal Direct Labor CostDirect Materials PurchasesBeginning Finished Goods UnitsTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursDirect Labor Time (Hours) per UnitDesired Ending Direct Materials (Pounds)Beginning Direct Materials (Pounds)Cost per Pound$enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.) COOK FARM SUPPLY COMPANY Direct Labor Budget choose the accounting period  For the Six Months Ending June 30, 2020June 30, 2020For the Quarter Ending June 30, 2020 Quarter Six Months 1 2 select an opening labor budget item  Total Cost of Direct Materials PurchasesTotal Materials RequiredDesired Ending Finished Goods UnitsTotal Required UnitsCost per PoundDesired Ending Direct Materials (Pounds)Direct Materials per UnitTotal Pounds Needed for ProductionBeginning Finished Goods UnitsBeginning Direct Materials (Pounds)Direct Materials PurchasesTotal Direct Labor CostDirect Labor Time (Hours) per UnitExpected Unit SalesDirect Labor Cost per HourTotal Required Direct Labor HoursUnits to be Produced enter a number of units enter a number of units select a labor budget item  Direct Labor Time (Hours) per UnitBeginning Direct Materials (Pounds)Direct Materials per UnitDirect Labor Cost per HourTotal Pounds Needed for ProductionBeginning Finished Goods UnitsCost per PoundDesired Ending Direct Materials (Pounds)Desired Ending Finished Goods UnitsExpected Unit SalesTotal Materials RequiredTotal Required Direct Labor HoursTotal Required UnitsTotal Direct Labor CostTotal Cost of Direct Materials PurchasesDirect Materials PurchasesUnits to be Producedenter a number of hoursenter a number of hoursselect a summarizing line for the first part  Direct Materials PurchasesDesired Ending Direct Materials (Pounds)Desired Ending Finished Goods UnitsBeginning Finished Goods UnitsDirect Labor Cost per HourBeginning Direct Materials (Pounds)Expected Unit SalesTotal Cost of Direct Materials PurchasesDirect Materials per UnitTotal Pounds Needed for ProductionCost per PoundTotal Required Direct Labor HoursTotal Materials RequiredTotal Required UnitsDirect Labor Time (Hours) per UnitUnits to be ProducedTotal Direct Labor Cost enter a total number of hours for the first part enter a total number of hours for the first part select a labor budget item  Total Cost of Direct Materials PurchasesDesired Ending Finished Goods UnitsBeginning Finished Goods UnitsTotal Required Direct Labor HoursDirect Materials PurchasesTotal Pounds Needed for ProductionDirect Labor Cost per HourTotal Direct Labor CostDesired Ending Direct Materials (Pounds)Cost per PoundUnits to be ProducedTotal Materials RequiredDirect Materials per UnitBeginning Direct Materials (Pounds)Total Required UnitsExpected Unit SalesDirect Labor Time (Hours) per Unit$enter a dollar amount $enter a dollar amount select a closing labor budget item  Expected Unit SalesTotal Required Direct Labor HoursUnits to be ProducedDirect Materials PurchasesTotal Direct Labor CostDesired Ending Finished Goods UnitsDirect Materials per UnitDirect Labor Cost per HourBeginning Direct Materials (Pounds)Cost per PoundTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionBeginning Finished Goods UnitsDirect Labor Time (Hours) per UnitDesired Ending Direct Materials (Pounds)Total Required UnitsTotal Materials Required$enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget choose the accounting period  For the Quarter Ending June 30, 2020June 30, 2020For the Six Months Ending June 30, 2020 Quarter Six Months 1 2 select an item  Fixed CostBudgeted sales in unitsVariable CostTotalenter a total number of unitsenter a total number of unitsenter a total number of units select an item  TotalFixed CostBudgeted sales in unitsVariable Cost $enter a dollar amount  $enter a dollar amount  $enter a dollar amount  select an item  Fixed CostBudgeted sales in unitsTotalVariable Costenter a dollar amountenter a dollar amountenter a dollar amountselect a closing budget item  Variable CostFixed CostBudgeted sales in unitsTotal$enter a total dollar amount $enter a total dollar amount $enter a total dollar amount  eTextbook and Media Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to 0 decimal places, e.g. 1,255.) COOK FARM SUPPLY COMPANY Budgeted Income Statement choose the accounting period  For the Six Months Ending June 30, 2020June 30, 2020For the Quarter Ending June 30, 2020select an income statement item  Income from OperationsPurchasesCost of Goods SoldInterest ExpenseOperating ExpensesEnding InventoryIncome Tax ExpenseTotal Operating ExpensesIncome Before Income TaxNet Income / (Loss)Gross ProfitBeginning InventorySalesSelling and Administrative Expenses $enter a dollar amount  select an income statement item  Beginning InventoryOperating ExpensesGross ProfitIncome from OperationsSelling and Administrative ExpensesEnding InventoryIncome Tax ExpenseInterest ExpenseIncome Before Income TaxSalesCost of Goods SoldTotal Operating ExpensesNet Income / (Loss)Purchasesenter a dollar amountselect a summarizing line for the first part  Operating ExpensesNet Income / (Loss)PurchasesIncome from OperationsSalesTotal Operating ExpensesSelling and Administrative ExpensesIncome Tax ExpenseCost of Goods SoldGross ProfitBeginning InventoryEnding InventoryIncome Before Income TaxInterest Expense enter a total amount for the first part select an income statement item  Interest ExpensePurchasesIncome Before Income TaxOperating ExpensesSelling and Administrative ExpensesIncome Tax ExpenseGross ProfitSalesEnding InventoryBeginning InventoryTotal Operating ExpensesNet Income / (Loss)Cost of Goods SoldIncome from Operationsenter a dollar amountselect a summarizing line for the second part  Income Tax ExpenseBeginning InventoryTotal Operating ExpensesInterest ExpenseCost of Goods SoldEnding InventoryIncome Before Income TaxIncome from OperationsNet Income / (Loss)SalesGross ProfitSelling and Administrative ExpensesOperating ExpensesPurchases enter a total amount for the second part select an income statement item  Cost of Goods SoldIncome from Operations Beginning Inventory Total Operating ExpensesSelling and Administrative ExpensesOperating ExpensesNet Income / (Loss)Gross ProfitPurchasesSalesEnding InventoryInterest ExpenseIncome Before Income TaxIncome Tax Expenseenter a dollar amountselect a summarizing line for the third part  Income from OperationsTotal Operating ExpensesSelling and Administrative ExpensesIncome Before Income TaxSalesIncome Tax ExpenseGross ProfitNet Income / (Loss)Cost of Goods SoldBeginning InventoryOperating ExpensesEnding InventoryPurchasesInterest Expense enter a total amount for the third part select an income statement item  Total Operating Expenses Beginning InventoryGross ProfitPurchasesIncome from OperationsCost of Goods SoldOperating ExpensesNet Income / (Loss)Interest ExpenseEnding InventoryIncome Before Income TaxSelling and Administrative ExpensesIncome Tax ExpenseSalesenter a dollar amountselect a closing name for the budgeted income statement  Beginning InventoryOperating ExpensesTotal Operating ExpensesInterest ExpenseIncome Before Income TaxNet Income / (Loss)Cost of Goods SoldSalesEnding InventoryGross ProfitSelling and Administrative Expenses Income Tax ExpenseIncome from OperationsPurchases$enter a total net income or loss amount  eTextbook and Media

question #1Describe the effect of higher levels of medical spending, profitability, and fiscal margins on process quality for health care organizations. Indicate the role of financial stability in health care organizations on their ability to adequately resource the staffing, equipment, and infrastructure that support care delivery. Use current journal or news articles in support of your position.Question #2A balanced scorecard is one method that may be used in a health care environment for the purpose of strategic budgeting. Provide 2-3 examples of other strategic budgeting methods that may be used in a health care organization and explain how each method can set the organization up to achieve positive financial results.