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Required information Problem 17-5A Pricing analysis with ABC and a plantwide overhead rate LO A1, A2, P1, P3 [The following information applies to the questions
Required information 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 Driver Machine hours Machine hours Batches Quantity 1,300 1,300 1,000 Department 2 Machine calibration Labeling Defects Overhead cost $ 4,900 10,700 112,900 $ 128,500 $ 270,000 14,000 11,000 $ 295,000 $ 94,000 26,000 69,000 $ 189,000 Production runs Cases of output Cases of output 600 125,000 125,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 50 1,300 12 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 24,000 cases 240 batches 450 MH 25 groups 9 containers 240 runs Family Style 101,000 cases 760 batches 850 MH 25 groups 3 containers 360 runs 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $7 per case of Extra Fine and $4 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.) Extra fine Family Style Activity Drivers Activity Overhead Cost Activity Drivers Activity Rate Overhead assigned Activity Drivers Overhead assigned Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Total overhead costs assigned
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