1 question but 4 parts
- Ch 4) 0 [The following information applies to the questions displayed below.) Sara's 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 the company's production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 5,700 Machine hours 2,100 Cooking 11,100 Machine hours 2,100 Product testing 113,700 Batches 750 $130,500 Department 2 Machine calibration $310,000 Production runs 500 Labeling 18,000 Cases of output 120,000 Defects 6,000 Cases of output 120,000 $334,000 Support Recipe formulation $ 81,000 Focus groups 50 Heat, lights, and water 42,000 Machine hours 2,100 Materials handling 77,000 Container types 7 $200,000 Additional production information about its two product lines follows, Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 32,000 cases 320 batches 850 MH 40 groups 4 containers 230 runs Family Style 88,000 cases 430 batches 1,250 MM 10 groups 3 containers 270 runs Required: 1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa, 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $8 per case of Extra Fine and $7 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per caso, determine the gross profit per case for each product 3.b. What might management conclude about the Family Style Salsa product line? Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 32,000 cases 320 batches 850 MH 40 groups 4 containers 230 runs Family Style 88,000 cases 430 batches 1,250 MH 10 groups 3 containers 270 runs Required: 1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $8 per case of Extra Fine and $7 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa. (Round your intermediate calculations and final answers to 2 decimal places.) por case Reg 2 > Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 32,000 cases 320 batches 850 MH 40 groups 4 containers 230 runs Family Style 88,000 cases 430 batches 1,250 MH 10 groups 3 containers 270 runs Required: 1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa am each case of Family Style Salsa. 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $8 per case of Extra Fine and $7 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 38 Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $8 per case of Extra Fine and $7 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit unit Extra Fine Family Style unit Machine hours Focus groups Container types Production runs 850 MH 40 groups 4 containers 230 runs 1,250 MH 10 groups 3 containers 270 runs of 3 Required: 1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra each case of Family Style Salsa. 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and cost is $8 per case of Extra Fine and $7 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per case, de gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fino Family Style Reg2 Req30 LOSS Profit Container types Production runs 230 runs 3 Required: 1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to ea each case of Family Style Salsa. 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the dire cost is $8 per case of Extra Fine and $7 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Req 3B What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line Eliminate Family Style Eliminate Family Style Retain Family Style
