1) Please complete the Problem as follows: Zippy Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and its production support activities follow. Process Activity OH Cost Department Mixing $ 4 500 Driver Machine hours Quantity 1500 Cooking Product testing 11 250 Machine hours 1500 112 500 Batches 600 $ 128 250 Department Machine calibration $ 250 000 Production runs 400 Labeling 12 000 Cases of output ##### Defects 6 000 Cases of output ##### $ 268 000 Support Recipe formulation $ 90 000 Focus groups 45 Heat, lights, and water Materials handling 27 000 Machine hours 1500 65 000 Container types 8 182 000 Additional production information about its two product lines follows. Units produce Batches Machine hours Focus groups Container type Production rur Extra fine 20 000 cases 200 batches 500 MH 30 groups 5 containers 200 runs Family Style 100 000 cases 400 batches 1000 MH 15 groups 3 containers 200 runs Note from Beth: I've left you templates to fill in on this problem and even some formulas. Your first job is to determine the plant-wide rate. Do this by adding together the three overhead amounts for a total and then divide the total by # of cases. Your check figure is $4.82 per case. For parts two and three, add DM & DL cost to the OH cost per case to get total cost per case. Your check figure is $10.82 for extra fine. Now subtract the total cost per case from Market Price to get gross profit per case. Keep your format for finding steps 2 & 3 as you will need the same format for steps 5 & 6. For part 4, use the same format we used in class. Total cost check figure for Extra Fine is $20.02 This problem takes more Excel work than brain power. You can do it!