Sales $ 980,000 $1,080,000 Leather used for the bicycle seats 27,440 Production manager's salary 30, 240 6,400 Life insurance for the company president 6,400 240 240 Electricity used in the production facilities 4,060 4,460 Sales commissions 45,800 50,960 Internet advertising 1,100 1,100 Employee benefits for the production workerst 27,440 30, 240 Property taxes on the production facilities 1,400 1,400 Shipping costs 45,800 50,960 Salary of the chief financial officer 10,800 10,800 *Each month, regardless of how much electricity is used, Cycle Business pays a $140 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. 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 Manufacturing Administrative Behaviour Variable Fixed Direct/indirect 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 1,280 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. Cast