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. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.75 per 2. 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. 5 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 $177,000 per quarter. Interest expense is $100.000 Income taxes are expected to be 20% of income before income taxes. 6. 7. 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 I and $427.500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct matorials budget for Tare) Prepare the budgeted multiple-step income statement for the first 6 months. (Round Intermediate calculations to 2 decimal places and final answer to decimal places, es, 1.255.) SANDHILL FARM SUPPLY COMPANY Budgeted Income Statement For the Six Morths Ending June 30, 2022 Sales 4331000 Cost of Goods Sold 1141000 Gross Pront 3190000 Selling and Administrative Expenses 1003650 Income from Operations 2186350 Interest Expere 100000 Income Before income 2086350 Income Tax Expense 417270 Net Income 1669000