Question: Cyclepath manufactures 2 types of bicycles, the Basic and the Fancy. It takes 5 hrs to build the Basic bicycle, and 11 hours to build

Cyclepath manufactures 2 types of bicycles, the Basic and the Fancy. It takes 5 hrs to build the Basic bicycle, and 11 hours to build the Fancy bicycle. The material cost per unit is $85 and $115 for the Basic and Fancy respectively. Assume the labour rate is $32/hr. In the upcoming year Cyclepath plans on making 620 units of the Basic and 220 units of the Fancy. What amount of Direct Costs does Cyclepath anticipate spending in the upcoming year? A $196,920 B $254,640 C $225,780 D $150,620
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