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 1,140 bicycles were manufactured, shipped, and sold. There was no beginning or ending work in process or finished goods inventory in November:

October November

Units produced and sold 1,040 1,140

Sales $ 1,040,000 $ 1,140,000

Leather used for the bicycle seats 35,360 38,760

Production managers salary 6,700 6,700

Life insurance for the company president 270 270

Electricity used in the production facilities* 5,370 5,870

Sales commissions 46,400 51,680

Internet advertising 1,200 1,200

Employee benefits for the production workers 29,120 31,920

Property taxes on the production facilities 1,700 1,700

Shipping costs 46,400 51,680

Salary of the chief financial officer 11,400 11,400

*Each month, regardless of how much electricity is used, Cycle Business pays a $170 base charge to the utilities company. Employee benefits total 20% of the wages paid to production workers, who on average earn $20 per hour. Each bicycle requires 7 hours of direct labour.

Assume that 1,340 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.