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 1,160 bicycles were manufactured, shipped, and sold. There was no beginning or ending work in process or finished goods inventory in November: partial list of expense items incurred in the most recent month (November), when 1,160 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 1,060 1,160 Sales $1,050,000 $1,160,000 Leather used for the bicycle seats 38,160 41,760 Production manager's salary 6,800 6,369 Life insurance for the company president 280 280 Electricity used in the production facilities 2,300 Sales comissions 2,500 46,600 51,920 Internet advertising 1,300 1,300 Employee benefits for the production workerst 38,160 41,760 Property taxes on the production facilities 1,800 Shipping costs 46,600 51,920 Salary of the chief financial officer 11,600 11,600 Each month, regardless of how much electricity is used, Cycle Business pays $180 base charge to the utilities company. Employee benefits total 20% of the wages paid to production workers, who on average earn 520 per hour. Each bicycle requires 9 hours of direct labour. Required: 1. With respect to the partial list of November expenses: a. Use the Type column to label each item as a Manufacturing, Administrative, or Selling cost. b. For those items you labeled as a Manufacturing cost, 1. Use the Behaviour column to label each item as variable or fixed manufacturing costs. ii. Use the Direct/indirect column to label each item as a direct or indirect cost. Type Behaviour Direct/indirect Item 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 2. Assume that 1.360 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