Ikon Equipment produces exercise equipment. The following schedule reveals anticipated monthly production of bicycles for the first three months of the year:

Question 4 - 5 (B-21.06 Direct labor and factory overhead budgeting) Ikon Equipment produces exercise equipment. The following schedule reveals anticipated monthly production of bicycles for the first three months of the year: January 11,000 February 14,000 March 12,500 Ikon budgets for three direct labor hours per bicycle, at an average cost of $16.50 per hour. Variable factory overhead is applied at the rate of $10.25 per direct labor hour. Fixed overhead is expected to run $110,000 per month, which includes $10,000 per month of noncash expenses related to depreciation. Q4. Determine the expected cash outflow for labor in January Q5. Determine the expected cash outflow for overhead in January