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Cycle Business manufactures and sells road and mountain bikes througha network of retail outlets in western Canada. Below is a partial list of expense items

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Cycle Business manufactures and sells road and mountain bikes througha network of retail outlets in western Canada. Below is a partial list of expense items incurred in the most recent month (November), when 1,040 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 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 940 940,000 S 1.040.000 31.960 6.200 5.320 45.400 1,000 33.840 1,000 37,440 1 200 45.400 10.400 10.400 Each month, regardless of how much electricity is used, Cycle Business pays a $120 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 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, i. 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 2. Assume that 1,240 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

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