14.

Saras 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 companys production support activities follow.

Process	Activity	Overhead cost			Driver	Quantity
Department 1	Mixing	$	5,200		Machine hours	1,600
	Cooking		10,800		Machine hours	1,600
	Product testing		113,200		Batches	500
		$	129,200
Department 2	Machine calibration	$	285,000		Production runs	750
	Labeling		10,500		Cases of output	155,000
	Defects		5,000		Cases of output	155,000
		$	300,500
Support	Recipe formulation	$	97,000		Focus groups	50
	Heat, lights, and water		34,000		Machine hours	1,600
	Materials handling		72,000		Container types	8
		$	203,000

Additional production information about its two product lines follows.

	Extra Fine		Family Style
Units produced	27,000	cases	128,000	cases
Batches	270	batches	230	batches
Machine hours	600	MH	1,000	MH
Focus groups	40	groups	10	groups
Container types	6	containers	2	containers
Production runs	270	runs	480	runs

4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $10 per case of Extra Fine and $9 per case of Family Style. (Round your intermediate calculations to 2 decimal places. Round "Activity Rate" and "Overhead cost per unit" answers to 2 decimal places.)

						Extra fine		Family Style
Activity	Overhead Cost	Activity Drivers		Activity Rate		Activity Drivers	Overhead assigned	Activity Drivers	Overhead assigned
Mixing & Cooking
Product testing
Machine calibration
Labeling & Defects
Recipe formulation
Heat, light and water
Material handling
					Extra fine	Family Style