! Required information 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 Mixing Department 1 Driver Quantity $4,600 Machine hours 1,000 Cooking 10,500 Machine hours 1,000 Product testing 112,600 Batches 600 $127,700 Department 2 Machine calibration $255,000 Production runs 500 Labeling 12,500 Cases of output 130,000 Defects 7.000 Cases of output 130,000 $274,500 Support Recipe formulation $ 91,000 Focus groups 50 Heat, lights, and water 28,00 Machine hours 1,000 Materials handling 66, ada Container types 8 $185,000 Additional production information about its two product lines follows. Extra Fine Family Style Units produced 21,000 cases 109,000 cases Batches 210 batches 390 batches Machine hours 300 MH 700 MH Focus groups 32 groups 18 groups Container types 7 containers 1 containers Production runs 210 runs 290 runs Reauired: Prow 11 Next > 12 13 of 20 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 $4 per case of Extra Fine and $3 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $15 per case and the market price of Family Style Salsa is $6 per case determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 3B 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. (Round your intermediate calculations and final answers to 2 decimal places.) Plantwide overhead rato per case Reg 2 > Production runs 210 runs ACES 290 runs 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 $4 per case of Extra Fine and $3 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $15 per case and the market price of Family Style Salsa is $6 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Reg 1 Reg 21 Reg Reg 3B Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $4 per case of Extra Fine and $3 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit unit Extra Fine Family Style unit CO2 of 20 Next > Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req Req 3B What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line Eliminate Family Style Retain Family Style
