Annies Homemade has been invited to submit a bid to cater a Memorial Day picnic with $60$ servings of four flavors for a total of $240$ pre$-$packaged servings of ice cream. Annies average ingredient and packaging costs $($including cup, lid, spoon, and stickers$)$ are $$1\mathrm{.}50$ per serving. It would cater the event with one manager, whose is paid an annual salary of $$40,000($or an average of $$20\mathrm{.}00$ per hour$),$ and two additional employees who are paid $$8\mathrm{.}00$ per hour. The wedding party expects Annies staff to remain on$-$site for two hours to serve ice cream. The round$-$trip drive time to the event plus the tent setup and breakdown time is $1\mathrm{.}50$ hours. The wedding is $40$ miles round$-$trip and the company pickup trucks diesel fuel, diesel exhaust fluid, and oil expenses are $$0\mathrm{.}75$ per mile.The manager catering the wedding would also spend $3\mathrm{.}5$ hours manufacturing the ice cream for the picnic and portioning it into six$-$ounce paper cups. He would be assisted by one employee for two hours who would apply a branded flavor sticker and an ingredient label before securing one lid on each cup of ice cream. The company can fulfill the order with its existing capacity and has gathered the following information with respect to its annual fixed overhead:In$-$store Manufacturing overhead $($e$.$g$.,$ equipment depreciation, rent, utilities, insurance, etc.$).....$$ $48,000$Number of servings produced per year $($including mobile servings$)....\mathrm{.}80,000$Pickup truck depreciation, insurance, registration, and vehicle tax.....$ $10,000$Mobile sales equipment depreciation $($e$.$g$.,$ trailer, mobile freezer and serving tent$).....$$ $3,000$Number of mobile servings sold per year....$\mathrm{.}16,250$The total bid price splits into two piecesgross revenue and state and local sales tax $(7\%).$ Then, $5\%$ of the gross revenue will be paid to Annies Homemades corporate headquarters as a royalty fee. Since the picnic sponsor plans to pay with a credit card, $3\%$ of the total bid price will be paid to the credit card company for processing the payment.Required:$3$a$.$ Which of the following statements is true?$4.$ If Annies assumes its mobile sales variable overhead includes $$0\mathrm{.}75$ per mile for the pickup truck, what is the total variable overhead cost assigned to this job?$5.$ Assume Annies has two fixed overhead costs pools. The first pool includes in$-$store fixed manufacturing overhead and its allocation base is number of servings produced per year. The second pool includes the pickup trucks fixed operating costs and the mobile sales equipment depreciation and its allocation base is the number of mobile servings sold per year.What is the overhead rate in each of these two cost pools?How much total fixed overhead cost would be allocated to this job from these two cost pools?$6.$ What is the total estimated job cost for the Memorial Day picnic?$7.$ Assume Annies bids $$1,080$ for this job $($or $$4\mathrm{.}50$ per serving$).$ If it wins the bid, how much of the total bid receipts:Will be recorded as gross sales revenue?Will be paid to governing authorities as sales tax?Will be paid to Annies Homemade corporate headquarters?Will be disbursed to the company that processes the credit card payment?Will be recorded as net sales revenue?$8.$ If Annies bids $$1,080($or $$4\mathrm{.}50$ per serving$)$ for this job, what profit $($loss$)$ would it realize using your total estimated job cost from requirement $6?$