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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
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. Driver Process Department 1 Mixing Activity Overhead cost $ 4,700 Machine hours Cooking 15,600 Machine hours Product testing 114,400 $134,700 Batches Quantity 2,800 2,800 650 Department 2 Machine calibration. $345,000 Production runs 750 Labeling 18,000 Cases of output 180,000 Defects 9,000 Cases of output 180,000 $372,000 Support Recipe formulation $ 88,000 Focus groups 40 Heat, lights, and water Materials handling 42,000 84,000 Machine hours Container types 2,800 B $214,000 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 30 groups 4 containers 300 runs Family Style 141,000 cases 260 batches 1,600 MH 10 groups. 4 containers 450 runs
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