Question
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
[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, overheadcosts, and drivers associated with these two manufacturing processes and the company's production support activities follow.
ProcessActivityOverhead costDriverQuantityDepartment 1Mixing$5,300Machine hours1,700Cooking10,000Machine hours1,700Product testing113,300Batches550$128,600Department 2Machine calibration$290,000Production runs800Labeling16,000Cases of output130,000Defects10,000Cases of output130,000$316,000SupportRecipe formulation$98,000Focus groups50Heat, lights, and water34,000Machine hours1,700Materials handling73,000Container types10$205,000
Additional production information about its two product lines follows.
Extra FineFamily StyleUnits produced28,000cases102,000casesBatches280batches270batchesMachine hours650MH1,050MHFocus groups20groups30groupsContainer types7containers3containersProduction runs280runs520runs
rev: 06_09_2018_QC_CS-128873
5.If the market price is $13 per case of Extra Fine and $7 per case of Family Style, determine the gross profit per case for each product.(Round your intermediate calculations and finalanswers to 2 decimal places.)
Extra Fine
Family Style
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