repare the selling and administrative expense budget. WILDHORSE FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2020 V Quarter Six Months Sales 28400 42600 71000 Variable Expenses 259860 649650 389790 176000 649650 176000 X Fixed Expenses 176000 176000 Total Selling and Administrative Expenses v 435860 $ 565790 825650 Click if you would like to Show Work for this question: Open Show Work Question 5 Wildhorse 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, 28,400 bags; quarter 2, 42,600 bags. Selling price is $61 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 $1.75 per pound. 3. Desired inventory levels: January 1 April 1 July 1 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) 8,400 9,200 14,500 12,300 10,200 20,200 18,100 13,400 25,300 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 $303,000 in quarter 1 and $425,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)