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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

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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 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 1,500 1,500 600 Department 2 Machine calibration Labeling Defects Overhead cost Driver $ 4,500 Machine hours 11,250 Machine hours 112,500 Batches $128, 250 $250,000 Production runs 12,000 Cases of output 6,000 Cases of output 5268,000 $ 90,000 Focus groups 27,000 Machine hours 65,000 Container types $182,000 400 120,000 120,000 Support Recipe formulation Heat, lights, and water Materials handling 45 1,500 8 Additional production Information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 20,000 cases 200 batches 500 MH 30 groups 5 containers 200 runs Family Style 100,000 cases 400 batches 1,800 MH 15 groups 3 containers 200 runs Problem 17-5A Part 4

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