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4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $6 per case
4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $6 per case of Extra Fine and $5 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.) Activity Overhead Cost Activity Drivers Activity Rate Activity Driv Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Extra fine Family Sty Required information Problem 17-5A Pricing analysis with ABC and a plantwide overhead rate LO A1, A2, P1, P3 [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 Department 1 Activity Mixing Cooking Product testing Driver Machine hours Machine hours Batches Quantity 1,500 1,500 600 Department 2 Machine calibration Labeling Defects Overhead cost $ 4,500 11,250 112,500 $ 128, 250 $ 250,000 12,000 6,000 $ 268,000 $ 90,000 27,000 65,000 $ 182,000 Production runs Cases of output Cases of output 400 120,000 120,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 45 1,500 8 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 20,000 cases 200 batches 500 MH 30 groups 5 containers 200 runs Family Style 100,000 cases 400 batches 1,000 MH 15 groups 3 containers 200 runs rect labor and direct materials cost is $6 per case of Extra to 2 decimal places. Round "Activity Rate" and Extra fine Family Style Activity Rate Activity Drivers Overhead assigned Activity Drivers Overhead assigned Extra fine Family Style
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