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. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 7,000 Machine hours 2,900 Cooking 16,200 Machine hours 2,900 Product testing 114,500 Batches 500 $137,700 Department 2 Machine calibration $350,000 Production runs 700 Labeling 18,500 Cases of output 140,000 Defects 9.500 Cases of output 140,000 $378,000 Support Recipe formulation $ 89,000 Focus groups 50 Heat, lights, and water 58,000 Machine hours 2,900 Materials handling 85,000 Container types 10 $232,000 Additional production information about its two product lines follows. Extra Fine Family Style Units produced 40 , 000 cases 100, 000 cases Batches 400 batches 100 batches Machine hours 1,250 MH 1,650 MH Focus groups 32 groups 18 groups Container types 5 containers 5 containers Production runs 310 runs 390 runs 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. 7. Using the plantwide overhead rate, determine the total cost per case for the two products ifthe direct materials and direct labor cost is $11 per case of Extra Fine and 3? per case of Family Style. 1:. lfthe market price of Extra Fine Salsa is $19 per case and the market price of Family Style Salsa is $12 per case, determine the gross prot per case for each product. - L um.-. ___L-_______ _______ |_._|_ _L_..-.n__ r__=|..r.;_ r_|__ ___ 4...- |=__-) \fRequired: 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 forthe two products if the direct materials and direct labor cost is $11 per case of Extra Fine and $? per case of Family Style. 3.3. lfdte market price of Extra Fine Salsa is $19 per case and the market price of Family Style Salsa is $12 per case, determine the gross prot per case for each product 3J3. What might management conclude about the Familyr Style Salsa product line? Conullete this question In altering your answers "It the [alts below. Reql I Rqu l ReqSA ' Req SB Usitg lite plantwide overhead rate, detennite the total cost per case tor the two products i' the {feat materials and {Heat labor cost is $1 1 per case at Extra Fite and $7 per case at Famiv Style. (Round your intermediate calculations and nal answers to 2 decimal places.) Extra Fine unit Family Style unit 4: Reql RquA > 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 $11 per case of Extra Fine and $7? per case of Family Style. 1:. If the market price of Extra Fine Salsa is $19 per case and the market price of Family Style Salsa is $12 per case, determine the gross prot per case for each product 3.b. What might management conclude about the Family Style Salsa product line? Complete this question Irv entering your answers 'II the tabs below. Req 1 Req 2 Req 3A E Req SB Ifte market price of Extra Fite Salsa is $19 per case and the market price ofFamiv Style Salsa is $12 per case, deterrnite the gross prolit per case ior ead'. product. (Round your intermediate calculations and nal answers to 2 decimal places.) Extra Fine Family Style ( Req2 RquIB ) 5. If the market price is $19 per case of Extra Fine and $12 per case of Family\"' Style, determine the gross profit per case for each product. (Round your intermediate calculations and nal answers to 2 decimal places.) Extra Fine Family Style
