Sandhill 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. 1. Sales: quarter 1,28,000 bags; quarter 2,43,000 bags. Selling price is $61 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.8 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,100 12,400 18,400 Gumm (pounds) 9,200 10,400 13,500 Tarr (pounds) 14,400 20,300 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 $177,000 per quarter. 6. Interest expense is $100,000. 7. 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 $302,000 in quarter 1 and $427,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) Prepare the sales budget. SANDHILL FARM SUPPLY COMPANY Sales Budget Quarter $ $ $ $ Six Months Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, eg. 52.70) SANDHILL FARM SUPPLY COMPANY Direct Materials Budget-Gumm Prepare the production budget. SANDHILL FARM SUPPLY COMPANY Production Budget 4 $ SANDHILL FARM SUPPLY COMPANY Direct Labor Budget Quarter Prepare the selling and administrative expense budget SANDHILL FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter $ $ $ Quarter Quarter $ $ Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, eg. for 45 minutes the proportion will be 0.75) 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, eg. 1,255) SANDHILL FARM SUPPLY COMPANY Budgeted Income Statement eTextbook and Media