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Required information Problem 4-5A Pricing analysis with ABC and a plantwide overhead rate LO A1, A2, P1, P3 [The following information applies to the questions
Required information Problem 4-5A 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 Department 1 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 $ 268,000 $ 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 1,000 MH 15 groups 3 containers 200 runs X Answer is not complete. Extra fine Overhead Cost Activity Family Style Activity Drivers Activity Drivers Activity Rate Overhead assigned Activity Drivers Overhead assigned 4,500 500 1,500 600 machine hours batches 500 X runs 200 125,000 Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling 112,500 250,000 18,000 9,000 400 120,000 45 7.50 X per machine hour 187.50 per batch 625.00 per run 0.10 X per case 2,000.00 per group 18.00 per machine hour cases 2,000 X 200 0 27,0000 1,000 groups machine hours container types 65,000 8,125.00 per type Total overhead costs assigned Extra fine Family Style
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