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 1,130 bicycles were manufactured, shipped, and sold. There was no beginning or ending work in process or finished goods inventory in November:

Item	October			November
Units produced and sold		1,030			1,130
Sales	$	1,030,000		$	1,130,000
Leather used for the bicycle seats		33,990			37,290
Production managers salary		6,650			6,650
Life insurance for the company president		265			265
Electricity used in the production facilities*		4,285			4,685
Sales commissions		46,300			51,560
Internet advertising		1,200			1,200
Employee benefits for the production workers		24,720			27,120
Property taxes on the production facilities		1,650			1,650
Shipping costs		46,300			51,560
Salary of the chief financial officer		11,300			11,300
*Each month, regardless of how much electricity is used, Cycle Business pays a $165 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 6 hours of direct labour.

Type Manufacturing Manufacturing Behaviour Variable Fixed Direct'Indirect Direct Indirect Administrative Variable Indirect 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 workers Property taxes on the production facilities Shipping costs Salary of the chief financial officer Manufacturing Selling Selling Manufacturing Manufacturing Selling Administrative Variable Fixed Indirect Indirect 2. Assume that 1.330 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