Sheridan Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing audgets for Snare for the first 2 quarters of 2022 . 1. Sales: quarter 1,28,600 bags; quarter 2,42,600 bags. Selling price is $63 per bag. 2. Direct materials: each bag of S nare requires 5 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.75 per pound. 3. Desired inventory levels: 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 20% of income before income taves 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 $300.000 in quarter 1 and $422.500 in quarter 2. Wote Do not prepare the manufacturing overhesd budget or the direct materials budget for Tarr) Prepare the sales budget. Prepare the production budget. eTextbook and Media SHERIDAN FARM SUPPLY COMPANY Direct Materials Budget-Gumm For the Six Months Ending June 30, 2022 Quarter 1 2 Units to be Produced Direct Materials per Unit Total Pounds Noeded for Production Total Materibls Required Direct Materiais Purchases comper Pound 5 Prepare the direct labor budget. (Enter Direct lobor time per unit in proportion to hours, egs for 45 minutes the proportion will be 0.75 ) Prepare the selling and administrative expense budget. Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 dalmal places and final answer to O decimal ploces, es, 1,255.) Prepare the budgeted multiple-step income statement for the first 6 months, /Round intermediote calculations to 2 decimal places and final answer to 0 decimal places, es 1.255