4.

Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $7 per case of Extra Fine and $6 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.)

5.	If the market price is $16 per case of Extra Fine and $11 per case of Family Style, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.

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. Activity Overhead cost Driver Quantity Process 5,600 Machine hours Department 1 Mixing 2,000 Cooking 11,200 Machine hours 2,000 113,600 Batches 800 Product testing 130,400 305,000 Production runs Department 2 Machine calibration 400 17500 Cases of output Labeling 110.000 Defects 4,500 Cases of output 110.000 327,000 80,000 Focus groups Support Recipe formulation 80 38,000 Machine hours 2,000 Heat, lights, and water 76,000 Container types Materials handling 194,000 Additional production information about its two product lines follows. Extra Fine Family Style 31,000 cases Units produced 79,000 cases Batches 310 batches 490 batches 800 MH 1,200 MH Machine hours Focus groups 55 groups 25 groups 2 containers Container types 6 containers 180 runs 220 runs Production runs