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 Styl home use Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and associated with these two manufacturing processes and the company's production support activities follow. Process Activity Department 1 Mixing Cooking Product testing Driver Machine hours Machine hours Batches Quantity 1,500 1,500 600 Department 2 Machine calibration Labeling Defects Overhead cost $4,500 11,250 112,500 5128,250 $250,000 12,000 6,000 $268,000 $ 90,000 27.000 65.000 $182,000 Production runs Cases of output Cases of output 400 120,000 120,000 Support Recipe formulation Heat, light, and water Materials handling Focus group Machine hours Container types 45 1,500 8 Additional production information about its two product lines follows. Units produced Batches Machine hours Tocus groups Container types Production runs Otra Fine 20.000 cases 200 batches 500 MM 30 group 5 containers 200 runn Family Style 100,000 casos 400 batches 1,000 15 groups 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 Fines 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 is $6 per case of Extra Fine and $5 per case of Family Style 3. If the market price of Extra Fine Seisa is $18 per case and the market price of Family Style Solsa is $9 per case, determine gross profit per case for each product 3.1. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Net Reg2 ROSA Rog 36 using a blantwide overhead rate based on cases comote the overhead cost that is assioned to each case of Extra Fine Salsa 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? Complete this question by entering your anewers in the tabs below. Rng 1 Reg 2 Red Reg 38 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.) pers Reg 2 > roblem 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. 3.1. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Reg 1 Reg2 REGJA Red 35 Using the plantwide overhead rate, determine the total cost per unit for the two products of the direct materials and direct labor cost is $6 per case of Extra Fine and $5 per case of Family Style (Round your intermediate calculations and Anal onwers to 2 decimal places) Totalprint Fine vary Style Reg SA > 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. 3.0. 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? Complete this question by entering your answers in the tabs below. og 2 ROSA Reg1 Reg 36 If the market price of Extra Fine Salsa is $10 per case and the market price of Family Style Salsa is 59 percase, determine the gross profit per case for each product. (Round your intermediate calculations and finanswers to decimal places) Extra Fine Family Style
