HOW DO I CALCULATE?
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 Quantity 1,000 1,000 600 Department 2 Machine calibration Labeling Defects Overhead cost Driver $ 4.600 Machine hours 10,500 Machine hours 112,600 Batches $ 127,700 $ 255,000 Production runs 12.500 Cases of output 7,000 Cases of output $ 274,500 $ 91,000 Focus groups 28,000 Machine hours 66.000 Container types $ 195,000 500 130,000 130,000 Support Recipe formulation Heat, lights, and water Materials handling 1,000 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 21,000 cases 210 batches 300 MH 32 groups 7 containers 210 runs Family Style 109,000 cases 390 batches 700 MH 1B groups i containers 290 runs 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $4 per case of Extra Fine and $3 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 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 Overhead cost Driver $ 4,600 Machine hours 10,500 Machine hours 112,600 Batches $ 127,700 Quantity 1,000 1,000 600 Department 2 Machine calibration Labeling Defects Production runs Cases of output Cases of output 500 130,000 130,000 $ 255,000 12,500 7,000 $ 274,500 $ 91,000 28,000 66,000 $ 185,000 Support 50 Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 1,000 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 21,000 cases 210 batches 300 MH 32 groups 7 containers 210 runs Family Style 109,000 cases 390 batches 700 MH 18 groups 1 containers 290 runs 5. If the market price is $15 per case of Extra Fine and $6 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.) Extra Fine Family Style Loss Profit
