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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 Cooking Product testing Overhead cost $ 5,300 Quantity Machine hours 10,000 113,300 $128,600 Machine hours 1,700 1,700 Batches 550 Department 2 Machine calibration $290,000 Production runs 800 Labeling 16,000 Cases of output 130,000 Defects 10,000 Cases of output 130,000 $316,000 Support Recipe formulation $ 98,000 Heat, lights, and water Materials handling 34,000 73,000 $205,000 Focus groups Machine hours Container types: 50 1,700 10 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types: Production runs Extra Fine 28,000 cases 280 batches 650 MH 20 groups 7 containers 280 runs Family Style 102,000 cases 270 batches 1,050 MH 30 groups 3 containers 520 runs
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