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 Department 1 Activity Mixing Cooking Product testing Quantity 2,800 2,800 650 Department 2 Machine calibration Labeling Defects Overhead cost Driver $ 4,700 Machine hours 15,600 Machine hours 114,400 Batches $ 134,700 $ 345,000 Production runs 18,000 Cases of output 9,000 Cases of output $ 372,000 $ 88,000 Focus groups 42,000 Machine hours 84,000 Container types $ 214,000 750 180,000 180,000 Support Recipe formulation Heat, lights, and water Materials handling 40 2,800 8 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 39,000 cases 390 batches 1,200 MH 30 groups 4 containers 300 runs Family Style 141,000 cases 260 batches 1,600 MH 10 groups 4 containers 450 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 $8 per case of Extra Fine and $9 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 $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? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req 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.) Plantwide overhead rate per case Req 1 Reg 2 Req 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 $8 per case of Extra Fine and $9 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit Extra Fine unit Family Style unit Reg 1 Reg 2 Req Req 3B If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style Reg 1 Reg 2 Req Req 3B If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style Req 1 Reg 2 Reg Req 3B What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line
