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 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 Overhead cost $ 4,500 Cooking 11,250 Driver Machine hours Machine hours Quantity 1,500 1,5001 Product testing 112,500 Batches 600 $128,250 Department 2 Machine calibration $250,000 Production runs 400 Labeling 12,000 Cases of output 120,000 Defects 6,000 Cases of output 120,000 $268,000 Support Recipe formulation Heat, lights, and water Materials handling $ 90,000 27,000 Focus groups Machine hours 45 1,500 65,000 $182,000 Container types 8 Additional production information about its two product lines follows. Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 20,000 cases 200 batches 500 MH 30 groups 5 containers 200 runs Family Style 100,000 cases 400 batches 1,000 MH 15 groups 3 containers 200 runs Problem 17-5A Parts 1, 2 & 3 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 unit for the two products if the direct materials and direct labor cost is $6 per case of Extra Fine and $5 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $18 per case and the market price of Family Style Salsa is $9 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Style Salsa product line? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B 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 final answer to 2 decimal places.) Plantwide overhead rate per case Req1 Req 2 Req 1 Req 2 Req 3A Req 3B Using the plantwide overhead rate, determine the total cost per unit for the two products if the direct materials and direc labor cost is $6 per case of Extra Fine and $5 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style Total cost per unit unit unit 01:58:56 Req 1 Req 2 Req 3A Req 3B Skipped If the market price of Extra Fine Salsa is $18 per case and the market price of Family Style Salsa is $9 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 < Req 2 Req 3B > 01:58:36 Req 1 Req 2 Req 3A Req 38 kipped What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line < Req 3A Req 38 >