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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

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[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

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.)

Extra fine Family Style
Activity Overhead Cost Activity Drivers Activity Rate Activity Drivers 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
Extra fine Family Style

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