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 Activity Overhead cost Driver Quantity Department 1 Moixing $ 4,580 Machine hours Cooking 11,25 Machine hours 1,580 Product testing 112,50 Batches 650 $ 128,290 Department 2 Machine calibration $ 250,000 Production runs 400 Labeling 12,000 Cases of output 120,000 Defects 6,888 Cases of output 129,000 $ 268,888 Support Recipe formulation $ 90,cee Focus groups 45 Heat, lights, and water 27,eee Machine hours 1,5ee Materials handling 65,800 Container types $ 182,000 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 29,000 cases 200 bat ches 508 MH 30 groups 5 containers 200 runs Family style 180,000 cases 469 batches 1,600 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