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. Activity Proce33 Department 1 Mixing Cooking Quantity 1,200 1,200 750 Product testing Department 2 Machine calibration Labeling Defects Overhead cost Driver $ 4,800 Machine hours 11,100 Machine hours 112,800 Batches $ 128,700 $265,000 Production runs 10,000 Cases of output 6,500 Cases of output $281,500 $ 93,000 Focus groups 30,000 Machine hours 68,000 Container types $191,000 400 165,000 165,000 Support 60 Recipe formulation Heat, lights, and water Materials handling 1,200 10 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 23,000 cases 230 batches 400 MH 30 groups 7 containers 230 runs Family Style 142,000 cases 520 batches 800 MH 30 groups 3 containers 170 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 $6 per case of Extra Fine and $5 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 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