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Problem 17-5A Pricing analysis with ABC and a plantwide overhead rate LO A1, A2, P1, P3 (The following information applies to the questions displayed below.]
Problem 17-5A 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 home use. Salsa associated with these two manufacturing processes and the company's production support activities follow. condiments in two types: Extra Fine for restaurant customers and Family Style for prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers Overhead cost Driver Machine hours Quantity 1,500 Activity Process Mixing 4,500 Department 1 hours duct testing 600 112.500 Batches $128,250 $250,000 Machine calibration Department 2 Production runs 400 12,000 120 000 $268.000 Recipe formulation Heat, lights, and water Support $90.000 45 Focus groups Machine hours Container types 27,000 1,500 Materials handling $182.000 Additional production information about its two product lines follows, Extra Fine Family Style 100,000 cas es Unite produced 20.000 cases Batches 200 batches 400 batches 1. I hours Focus groups 30 groups containers 15 groups 3 containers runs Container types Production runs runs Problem 17-5A Part 4 1. Using A Fine and $5 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.) f Extra Extra fine Family Style Overhead Overhead Activity Activity Drivers Activity Rate Activity Drivers Overhead Cost Activity Drivers assigned assigned Mixing & Cooking 15,750 Product testing 112.500 Machine calibration 250,000 Labeling & Defects 18.000 Recipe formulation 90.000 Heat, light and water 27.000 Material handling 65.000 Extra fine Family Style
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