Required information Skip to question [The following information applies to the questions displayed below.] Saras 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 companys production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 6,200 Machine hours 2,600 Cooking 12,000 Machine hours 2,600 Product testing 114,200 Batches 1,000 $ 132,400 Department 2 Machine calibration $ 335,000 Production runs 800 Labeling 17,000 Cases of output 160,000 Defects 7,000 Cases of output 160,000 $ 359,000 Support Recipe formulation $ 86,000 Focus groups 80 Heat, lights, and water 52,000 Machine hours 2,600 Materials handling 82,000 Container types 10 $ 220,000 Additional production information about its two product lines follows. Extra Fine Family Style Units produced 37,000 cases 123,000 cases Batches 370 batches 630 batches Machine hours 1,100 MH 1,500 MH Focus groups 62 groups 18 groups Container types 9 containers 1 containers Production runs 280 runs 520 runs rev: 06_09_2018_QC_CS-128873

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 case for the two products if the direct materials and direct labor cost is $9 per case of Extra Fine and $8 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line?

4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $9 per case of Extra Fine and $8 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.)

5. If the market price is $17 per case of Extra Fine and $12 per case of Family Style, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.)