please show steps of calculations

and consider variable costing

EcoHouses, Ltd. buys straw bales from farmers at 2 each, which it then treats with fungicide, before selling the bales for 4 each as a building material for \"eco-friendly" housing. The company is about to prepare its budget for the next year, using the following figures: Sales 1,500,000 treated bales Variable treatment costs 0.75 per bale. (Bales are treated as soon as they are received) Expected opening stock 100,000 treated bales Budgeted closing stock 200,000 treated bales Direct labour costs 0.50 per treated bales Budgeted fixed costs 800,000 Considering that the company uses variable costing: 1. Calculate the production quantities and its production cost budget. 2. Prepare the budgeted income statement for the next year