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Please show work with the answers. Thank you! Required information (The following information applies to the questions displayed below.] Sara's Salsa Company produces its condiments
Please show work with the answers. Thank you!
Required information (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 1,800 1,800 600 Department 2 Machine calibration Labeling Defects Overhead cost $ 5,400 11,700 113,400 $ 130,500 $ 295,000 16,500 5,500 $ 317,000 $ 99,000 36,000 74,000 $ 209,000 Production runs Cases of output Cases of output 400 100,000 100,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 55 1,800 10 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 29,000 cases 290 batches 700 MH 25 groups 8 containers 200 runs Family Style 71,000 cases 310 batches 1,100 MH 30 groups 2 containers 200 runs 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $5 per case of Extra Fine and $4 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 Total overhead costs assigned Extra fine Family Style 5. If the market price is $14 per case of Extra Fine and $9 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 StyleStep by Step Solution
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