Sheridan Farm Supply Compary 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 $63 per bag. 2. Direct materials: each bag of $ nare requires $ 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 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.) (a) Your answer is correct. Prepare the sales budget. Prepare the production budget. Prepare the production budget. Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.3. 52.70.) Prepare the directlabor budget. (Enter Direct labor time per unit in proportion to hours, e.3. for 45 minutes the proportion will be 0.75. ) Prepare the selling and administrative expense budget. Attempts: unlimited