Crane 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 $2022.$

Sales: quarter $1,29,800$ bags; quarter $2,42,400$ bags. Selling price is $$62$ per bag.

Direct materials: each bag of Snare requires $5$ pounds of Gumm at a cost of $$4$ per pound and $6$ pounds of Tarr at $$1\mathrm{.}5$ per pound.

Desired inventory levels:

$\backslash$table$[[$Type of Inventory,January $1,$April $1,$July $1],[$Snare $($bags$),8,100,12,100,18,100],[$Gumm $($pounds$),9,500,10,300,13,100],[$Tarr $($pounds$),14,100,20,100,25,200]]$

Direct labor: direct labor time is $15$ minutes per bag at an hourly rate of $$16$ per hour.

Selling and administrative expenses are expected to be $15\%$ of sales plus $$179,000$ per quarter.

Interest expense is $$100,000.$

Income taxes are expected to be $20\%$ 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 $$303,000$ in quarter $1$ and $$422,500$ in quarter $2.$

$($Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.$)$

Prepare the selling and administrative expense budget.

CRANE FARM SUPPLY COMPANY

Selling and Administrative Expense Budget

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