Problem 04-5A 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 Salse 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 Hixing $6.200 Machine hours 2,600 Cooking 12, eee Machine hours 2,600 Product testing 114,200 Batches 1,000 $ 132,400 Department 2 Machine calibration $ 335,000 Production runs see Labeling 17, ea Cases of output 160,000 Defects 7.000 Cases of output 160,000 5 359.000 Support Recipe formulation 586.000 Focus groups Heat, Hghts, and water $2,000 Machine hours 2,600 Materials handling 82.000 Container types $ 220,000 80 10 Additional production information about its two product lines follows Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 37,eee cases 378 batches 1,100 MH 62 groups 9 containers 280 runs Family Style 123,000 cases 63e batches 1,500 18 groups 1 containers 520 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, 2. Using the plantwide overhead rate, determine the total cost per case 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 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 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 Rega Reg 36 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 find answers to 2 decimal places) Plantwide overhead rate per case Req2 > Reg 1 Reg 2 Req 3A Reg 3 Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $9 per case of Extra Fine and 58 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 Reg 1 Reg 2 Reg 3A Req If the market price of Extra Fine Salsa is $17 per case and the market price of Family s the gross profit per case for each product. (Round your intermediate calculations and fi Extra Fine Family Style Reg 1 Reg 2 Reg 3A Req If the market price of Extra Fine Salsa is $17 per case and the market price of Family s the gross profit per case for each product. (Round your intermediate calculations and fi Extra Fine Family Style Reg 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 une