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 Cooking Product testing 11,250 112,500 Overhead cost $ 4,500 Driver Machine hours Machine hours Batches Quantity 1,500 1,500 600 $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 $ 90,000 Focus groups 45 Heat, lights, and water Materials handling 27,000 65,000 $182,000 Machine hours Container types 1,500 8 Additional production information about its two product lines follows. Units produced Batches Machine hours Extra Fine 20,000 cases 200 batches 500 MH types Focus groups Container Production runs 30 groups 5 containers 200 runs Family Style 100,000 cases 400 batches 1,000 MH 15 groups 3 containers 200 runs