Sweet Acacia Farm Supply Company manufactures and sells a fertilizer called Snare. The following data are available for preparing budgets for Snare for the first two quarters of 2022. 1. Sales: Quarter 1, 28,000 bags; quarter 2, 39,000 bags. Selling price is $65 per bag. 2. Direct materials: Each bag of Snare requires 4 kg of Gumm at $4.00 per kilogram and 6 kg of Tarr at $1.50 per kilogram. 3. Desired inventory levels: January 1 April 1 July 1 Type of Inventory Snare (bags) 7,000 12,000 16,000 Gumm (kg) 9,000 9,000 15,000 Tarr (kg) 12,000 21,000 24,000 4. Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $14.00 per hour. 5. The company expects selling and administrative expenses to be 15% of sales plus $176,000 per quarter. 6. It expects income taxes to be 30% of income from operations. Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to be 150% of direct labour cost. (2) The direct materials budget for Tarr shows the cost of Tarr purchases to be $300,000 in quarter 1 and $441,000 in quarter 2. Prepare the following operating budgets by quarters. (Note: Classify items as variable and fixed in the selling and administrative expenses budget.) Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr. Prepare the budgeted income statement for the first six months. (Round per unit calculations to 2 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 125.) SWEET ACACIA FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2022 Sales $ 4355000 Less : Cost of goods sold Gross profit Selling and administrative expenses 1005250 Income before income taxes Income tax expense Net income $ $