Question 13

(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 Quantity 1,700 1,700 550 Department 2 Machine calibration Labeling Defects Overhead cost Driver $ 5,300 Machine hours 10,000 Machine hours 113,300 Batches $ 128,600 $ 290,000 Production runs 16,000 Cases of output 10,000 Cases of output $316,000 $ 98,000 Focus groups 34,000 Machine hours 73,000 Container types $ 205,000 800 130,000 130,000 Support Recipe formulation Heat, lights, and water Materials handling 50 1,700 10 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 28,000 cases 280 batches 650 MH 20 groups 7 containers 280 runs Family Style 102,000 cases 270 batches 1,050 MH 30 groups 3 containers 520 runs 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $4 per case of Extra Fine and $3 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.) Activity Overhead Cost Activity Drivers Activity Rate Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Extra fine Extra fine Family Style Activity Drivers Overhead assigned Activity Drivers Overhead assigned Family Style