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I need help please Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa
I need help please
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 5,800 12,900 113,800 Driver Machine hours Machine hours Batches Quantity 2,200 2,200 1,000 $ 132,500 Department 2 $ Machine calibration Labeling Defects 315,000 20,000 9,000 Production runs Cases of output Cases of output 500 145,000 145,000 $ 344,000 Support $ Recipe formulation Heat, lights, and water Materials handling 82,000 33,000 78,000 Focus groups Machine hours Container types 40 2,200 $ 193,000 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 33,000 cases 330 batches 900 MH 30 groups 6 containers 240 runs Family Style 112,000 cases 670 batches 1,300 MH 10 groups 2 containers 260 runs 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. (Round your intermediate calculations and final answers to 2 decimal places.) Plantwide overhead rate per case 2. Using the plantwide overhead rate, determine the total cost per unit for the two products if the direct materials and direct labor cost is $9 per case of Extra Fine and $8 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit unit Extra Fine Family Style unit 3.1 If the market price of Extra Fine Salsa is $18 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style 3.2 What might management conclude about the Family Style Salsa product line? Retain Family Style Eliminate Family Style 5. If the market price is $18 per case of Extra Fine and $12 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
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