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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: Type of Inventory January 1 April 1 July 1 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. Prepare the selling and administrative expense budget by quarters. SWEET ACACIA FARM SUPPLY COMPANY Selling and Administrative Expenses Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Six Months Expected sales $ $ $ Variable costs $ ta ta Fixed costs Total selling and admin costs $ $ 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 $ Add $

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