Cycle Business manufactures and sells road and mountain bikes through a network of retail outlets in western Canada. Below is a partial list of expense items incurred in the most recent month (November), when 1,000 bicycles were manufactured, shipped, and sold. There was no beginning or ending work in process or finished goods inventory in November: October 900 November 1,000 Item Units produced and sold Sales Leather used for the bicycle seats Production manager's salary Life insurance for the company president Electricity used in the production facilities* Sales commissions Internet advertising Employee benefits for the production workerst Property taxes on the production facilities Shipping costs Salary of the chief financial officer $ 900,000 $1,000,000 27,000 30,000 6,000 6,000 200 200 1,000 1,100 45,000 50,000 1,000 1,000 18,000 20,000 1,000 1,000 45,000 50,000 10,000 10,000 *Each month, regardless of how much electricity is used, cycle Business pays a $100 base charge to the utilities company. 1 Employee benefits total 20% of the wages paid to production workers, who on average earn $20 per hour. Each bicycle requires 5 hours of direct labour. 2. Assume that 1,200 bicycles will be manufactured and sold in December. For the items you classified as manufacturing costs in requirement 1, estimate the cost for December. Assume that there will be no change in unit costs for any direct materials, hourly wages will remain the same, and employee benefits will continue at 20% of wages. Cost