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 Driver Quantity Department 1 Mixing S 4,900 Machine hours 1.300 Cooking 10,700 Machine hours 1,300 Product testing 112.900 Batches 1,000 $128,500 Department 2 Machine calibration $ 270,000 Production runs 600 Labeling 14,000 Cases of output 125.000 Defects 11,000 Cases of output 125.000 $295,000 Support Recipe formulation $ 94,000 Focus groups 50 Heat, lights, and water 26,000 Machine hours 1300 Materials handling 169,000 Container types 12 $189.000 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groupe Container types Production runs Extra Fine 24,000 cases 240 batches 450 MM 25 group 9 containers 240 runs Family Style 101,000 cases 760 batches 850 MH 25 groups 3 containers 360 rue I 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 $7 per case of Extra Fine and $4 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $16 per case and the market price of Family Style Salsa is $8 per case, determine the gross profit per case for each product 3.b. What might management conclude about the Family Style Salsa product line? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg Reg 38 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 overed per Reg 2 ) Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Rect? 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 $7 per case of Extra Fine and $4 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) $ Extra Fine Family Style Total cost per unit 17.54 unit 7.56 $ unit Req1 Req 3A > Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 38 If the market price of Extra Fine Saisa is $16 per case and the market price of Family Style Salsa is $8 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 Loss Profit $ $ 1.54 0.44 %
