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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
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. Overhead Process Activity cost Driver Quantity Department 1 Mixing $ 4,500 Machine hours 1,500 Cooking 11,250 Machine hours 1,500 Product testing 112,500 Batches 600 $128, 258 Department Machine Production 2 400 calibration $250,000 runs Labeling Cases of 12,000 output 120,000 Defects 6,000 Cases of 120,000 output $268,000 Support Recipe formulation $ 90,000 Focus groups 45 Heat, lights, and water 27,000 Machine hours 1,500 Materials handling 65,000 Container 8 types $182,000 Additional production Information about its two product lines follows. Extra Fine Family Style Units produced 20,000 cases 100,000 cases Batches 200 batches 400 batches Machine hours 500 MH 1,800 MH Focus groups 30 groups 15 groups Container 5 containers 3 containers types Production 200 runs 200 runs runs Overhead assigned Overhead Activity Drivers assigned 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $6 per case of Extra Fine and $5 per case of Family Style. (Round your intermediate calculations to 2 decimal places. Round "Activity Rate" and "Overhead cost per unit answers to 2 decimal places.) Cara me Overhead Activity Activity Rate Cost Activity Drivers Activity Drivers Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Extra fine Family Style
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