Task 1 Michelle and Vishayla need to know the cost per cake so they can be sure they are charging enough for each cake. They also need this to calculate the cost of goods sold. They feel that direct labor hour is the best cost driver for allocating manufacturing overhead. They pay their wage employees $12.00 per hour. Due to the type of production that they have, they believe job order costing is the best costing system. Here is the estimated data for 2020: Expected Type of cake Annual Selling Price Raw Ingredient Direct Labor per cake (Direct Hour sales Materials cost per per cake cake 1 tier wedding cake 400 $300 $40 6 2 tier wedding cake 500 $400 $50 8 3 tier wedding cake 150 $600 $75 10 Large sheet cake 450 $130 $25 3 Medium sheet cake 500 $90 $15 2 Small sheet cake 850 $85 $10 2