Check my wor 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 $ 4,500 Machine hours 1,500 Cooking 11,250 Machine hours 1,5ee Product testing 112,5ee Batches 600 $ 128, 250 Department 2 Machine calibration $ 250,000 Production runs 4ee Labeling 12,000 Cases of output 12e, eee Defects 6,000 Cases of output 120, eee $ 268,000 Support Recipe formulation $ 90, eee Focus groups 45 Heat, lights, and water 27, eae Machine hours 1,500 Materials handling 65,000 Container types 8 $ 182,000 es 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 3e groups 5 containers 200 runs Family Style 100,000 cases 4ee batches 1,000 MH 15 groups 3 containers zee runs 6 of 6 I Check my work Required information 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 direc labor cost is $6 per case of Extra Fine and $5 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $18 per case and the market price of Family Style Salsa is $9 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 3B 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 final answer to 2 decimal places.) Plantwide overhead rate per case Req1 Req2 > 4 f3 Required: 1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to eac 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 direc labor cost is $6 per case of Extra Fine and $5 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $18 per case and the market price of Family Style Salsa is determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? ok Complete this question by entering your answers in the tabs below. ht nces Reg 1 Reg 2 Req Reg 3B Using the plantwide overhead rate, determine the total cost per case for the two products if the direct mate labor cost is $6 per case of Extra Fine and $5 per case of Family Style. (Round your intermediate calculation answers to 2 decimal places.) Total cost per unit unit Extra Fine Family Style unit G B. Next > 4 of 6 6 son of 3 ereau CUSU lhat Is assi Salsa and each case of Family Style Salsa. 2. Using the plantwide overhead rate, determine the total cost per case for the two product labor cost is $6 per case of Extra Fine and $5 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $18 per case and the market price of Family Sty- determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? ook Complete this question by entering your answers in the tabs below. -int rences Req 1 Req 2 Req 3A Req 3B What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line of 6 4 5 6
