OK, here is the problem. I attached what I have already done…it is supposed to be done in excel.Part OneBig Al’s Pizza, Inc., a new subsidiary of Big Al’s Pizza Emporium, has been establishedto produce partially baked, fl ash-frozen, 16-inch meat pizzas to be soldwholesale to grocery and convenience stores and school cafeterias. As a new entrantto the market, the company’s goal is to produce and sell 319,500 pizzas in the firstyear. Big Al’s plans to keep approximately a one-month supply of frozen pizzas infinished goods inventory.Big Al’s Pizza will have 10 production lines. Each of the five workers on eachline will be responsible for one of the five stages of production: dough, sauce, cheese,toppings, and packaging. Each of the 10 production lines can produce 20 meat pizzasper hour.Big Al’s deals exclusively with Pizza Products, Inc. to purchase raw materialsand equipment. All ingredients (dough, sauce, cheese, meat, etc.) are fresh, and BigAl’s generally holds a two- or three-day supply in raw materials inventory.The projected material costs are as follows:Material Costs (per pizza)Complete dough shells $.12Complete sauce package .20Complete cheese package .08Complete meat package .30Complete assembly package .04Direct labor employees are paid on an hourly basis according to hours worked.Once production-line workers finish a day’s scheduled production, they are senthome. They can work a maximum of 8 hours each day without earning overtime.The overtime premium is an additional 50 percent of the basic hourly rate of $7.50per hour. Supervisors and other indirect labor employees are salaried.Labor Costs (estimated)Rate for direct labor $7.50 per hour (plus $2.50 per hour in fringe benefits)Indirect labor (per month):Supervisor (including fringe benefits) $3,000Other indirect labor (including fringe benefits) $2,000Overhead Costs (estimated, per month)Rent on production facility $1,000Utilities $1,475Other overhead:Indirect material $2,500Maintenance costs $1,500Quality inspection costs $2,000Equipment (lease costs) $2,500Selling and Administrative Costs (estimated, per month)Administrative salaries $4,000Salaries of sales staff $5,000Product promotion and advertising $2,000Rent on offi ce space for staff $2,000Utilities and insurance $ 500Lease of offi ce furniture and equipment $ 800During the fi rst year of operation, Big Al’s estimated that they would produce346,125 pizzas but actually produced 336,033 pizzas. Direct material costs were$248,664 and direct labor costs were $840,082 for 84,008 hours worked. Estimatedoverhead costs for the year were $191,700 while actual overhead was $193,000.Required:A. What is an appropriate cost driver for allocating overhead to pizzas in year 1?B. Using normal costing, compute the cost of each of the 336,033 meat pizzas producedin year 1. (Round down to nearest dollar.)C. Was overhead over- or underapplied during the year? By how much? Why doyou think overhead was over- or underapplied during the year?Part TwoIn its second year of operations, Big Al’s has decided to expand the product line byproducing a veggie pizza. This new pizza will require the purchase of a veggie packagefrom Pizza Products at a cost of $.18 per pizza. Of course, the meat packagewill not be required. All other ingredients and prices remain the same.The veggie toppings require additional processing time (cutting and dicing) thatlimits production to 18 veggie pizzas per hour per assembly line. The new veggiepizza is not expected to affect sales of the meat pizza. In the second year of operations,Big Al’s expects to produce about 352,800 meat pizzas and 25,200 veggie pizzas .Increasing production is expected to increase overhead costs by 5 percent inyear 2. Direct labor costs per hour are not expected to change, and the number oflabor hours is estimated to be 94,500. The costs of product promotion and advertisingare expected to increase to $3,000 per month. All other selling and administrativecosts are expected to remain the same as in year 1.Actual production in year 2 was 345,132 meat pizzas and 25,200 veggie pizzas.Direct material costs transferred to WIP were $259,000 for the meat pizzas and$15,624 for the veggie pizzas. Direct labor costs were $862,830 for the meat pizzasand $70,010 for the veggie pizzas, representing 86,283 and 7,001 direct laborhours, respectively. Actual overhead costs were $203,600.Purchases of raw materials during year 2 were $276,138. Sales during year 2were $1,701,410 for 340,282 meat pizzas and $121,275 for 23,100 veggie pizzas.SCHEDULE OF BEGINNING AND ENDING INVENTORY AMOUNTS FOR YEAR 2.Beginning Inventory