(c) Compute the target selling price for R2-D2. (d) Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 80,000 R2-D2s are produced sold during the year. T! : Bolivar Farm Supply Company manufactures and sells a fertilizer called Basic II. Prepare budgeted inca The following data are available for preparing budgets for Basic II for the first 2 quarters of statement and suppor 2017. budgets. (LO 1,2,3) 1. Sales: Quarter 1,40,000 bags; quarter 2.50,000 bags. Selling price is $60 per bag. 2. Direct materials: Each bag of Basic II requires 6 pounds of Crup at a cost of $4 per pound and 10 pounds of Dert at $2 per pound. 3. Desired inventory levels: Type of Inventory January 1 April July 1 asic II (bags) 10,000 15,000 20,000 Crup (pounds) 9,000 12,000 15,000 Dert (pounds) 15,000 20,000 25,000 4. Direct labor: Direct labor time is 15 minutes per bag at an hourly rate of $10 per hour. 5. Selling and administrative expenses are expected to be 10% of sales plus $150,000 per quarter. 6. Income taxes are expected to be 30% of income from operations. Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to be 100% of direct labor cost. (2) The direct materials budget for Dert which shows the cost of Dert to be $682,500 in quarter 1 and $825,00 in quarter 2. Instructions Prepare the budgeted income statement for the first 6 months of 2017 and all required supporting budgets by quarters. (Note: Use variable and fixed in the selling and adminis- trative expense budget.) Do not prepare the manufacturing overhead budget or the direct materials budget for Dert. Net income $105,000 Cost per bag 549 1 Dunes Company estimates that 240,000 direct labor hours will be worked during 2017 in the Assembly Denartment. On this basis. the following budgeted Prepare flexible bud and budget report 1