Required information

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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

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 $4 per case of Extra Fine and $3 per case of Family Style.

3.a.If the market price of Extra Fine Salsa is $13 per case and the market price of Family Style Salsa is $7 per case, determine the gross profit per case for each product.

3.b.What might management conclude about the Family Style Salsa product line?

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. (Round your intermediate calculations and nal answers to 2 decimal places.) - per use Req 3A Req 3B Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $4 per case of Extra Fine and $3 per case of Family Style. (Round your intermediate calculations and nal answers to 2 decimal places.) If the market price of Extra Fine Salsa is $13 per case and the market price of Family Style Salsa is $7 per case, determine the gross prot per case for each product. (Round your intermediate calculations and nal answers to 2 decimal places.) Req 1 Req 2 Req 3 A Req 3 B What might management conclude about the Family Style Salsa product line ?" Conclude about the Family Style Salsa product line*