Sheridan 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 1,28,600 bags; quarter 2,42,600 bags. Selling price is 563 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 $1.75 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. 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 taxes. Your assistant has prepared two budgets: (1) the manufacturing overhead budget shows expected costs to be 12.5% 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. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) rrepare tne sales budget. Prepare the production budget. Prepare the selling and administrative expense budget SHERIDAN FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the 5ix Menths Ending June 30,2022 : eTextbook and Media Solution Assistance Used Sheridan Farm Supply Cormpany mumufactures and sells a posticide called 5 nare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2022 1. Ssles quarter 1,28,600 bats quarter 2,42,600 bags. Selling price is 563 per bag 2. Direct materialsi 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 pound 3. Desired impentoryleveh: 4. Duect babof direct woor time h 15 minutes per bas at an hourly rate of 316 per hour. 5. Selling and administrative expenses are capected to be 15% of syle plus $176,000 per quarter 6. Interestempense is $100.000 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 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. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) Prepare the sales budget. Prepare the production budget. Question 18 of 18 1.95/3 : eTextbook and Media Attempts: unlimited Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.y. for 45 minutes the proportion. will be 0.75.) Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75 .) Prepare the selling and administrative expense budget. Prepare the selling and administrative expense budget. SHERIDAN FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2022 * Quarter 1 aksin Units perises ises sand Adiministrative Expenses : 2 2683800 Six Months eTextbook and Media Solution Assistance Used