Tracy is unsure how much to charge for the cupcakes. When she was making the cupcakes by herself and only rented a small storefront that was only open on weekends, she calculated the cost per cupcake based on the cost of ingredients and she added 50% to that cost to cover all of her other expenses. She is not sure if that was accurate. Tracy has asked you to help her determine the cost per cupcake. She has given you her estimated total for each expense. She does not know how to allocate her overhead costs. She also knows that some of her costs are product costs and some are period costs. She has given you a list of costs and needs you to, first, determine which costs are period costs and which costs are product costs and secondly, determine which are direct materials, direct labor, and factory overhead. She belleves that the best cost driver for the factory overhead costs to be the number of cupcakes baked and sold. Your assignment is to calculate the cost per cupcake and present your findings in a 1% page paper. Explain to Tracy the costs are product costs and the costs are period costs. She also needs to know which costs are direct materials and direct labor and how you allocated the factory overhead. Your paper can contain charts and other graphics you feel are helpful. Here is her expected annual data: The first year she expects to sell 100,000 cupcakes. She will pay her supervisor a salary and her bakers an hourly wage. The person she hires to work in the office will receive salary and her salesman will earn a commission based on the number of cupcakes sold for special events. Raw materials Variable 1335.750 All are purchased as needed to avoid spolage and to have the freshest ingredients Bakery wages Variable 557,000 They do all of the baking Fred 533000 Supervisor's salary Orice personnel Tracy ssalary Supervisor does not do any baking but supervises the bakers Office personnel do not do any baking Fixed $24,000 Fixed S40,000 She considers herself CEO Variable $21.500 Salesman's salary Suppies He is paid based on number of cupcakes sold to special events All used in the bakery Variable 55.000 Variable S4.500 US electric 75X13 for the bakery and 585 for the administrative office Varao 3.250 Al for batery U (6) for ovens water Varsta 15080 All for bakery red 52700 All for bakery Repairs and maintenance Lent expense FR 75% is for the bakery and 25 for the administrative office All for administrative Chic ciephone and Internet 52000