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 Department mixing Mixing Cooking Product testing Overhead cost $ 5,400 11,700 113,400 $130,500 Driver Machine hours Machine hours Batches Quantity 1,800 1,800 600 $295,000 400 Department Machine calibration Labeling 16,500 Production runs Cases of output Cases of output 100,000 100,000 Support 55 Defects 5,500 $317,000 Recipe formulation $ 99,000 Heat, lights, and 36,000 water Materials handling 74,000 $209,000 Focus groups Machine hours Container types 10 Additional production information about its two product lines follows. Extra Fine Family Style Units 71,000 cases 29,000 cases produced Batches 290 batches 310 batches Machine hours 700 MH 1,100 MH Focus groups 25 groups 30 groups Container 8 containers 2 containers types Production 200 runs 200 runs 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 $5 per case of Extra Fine and $4 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa is $9 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. Req 1 Req 2 Req 3A Req 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.) Show less Plantwide overhead rate per case Reg 1 Reg 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 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 $5 per case of Extra Fine and $4 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Show less Extra Fine Family Style Total cost per unit unit unit Reg 1 Req 3A > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa is $9 per case, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Show less Extra Fine Family Style 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
