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 $ 5,300 Machine hours 1, 700 Cooking 10,000 Machine hours 1, 700 Product testing 113, 300 Batches 550 $ 128, 600 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 Focus groups 50 Heat, lights, and water 34, 000 Machine hours 1, 700 Materials handling 73,000 Container types 10 $ 205, 000 Additional production information about its two product lines follows. Extra Fine Family Style Units produced 28, 000 cases 102,000 cases Batches 280 batches 270 batches Machine hours 650 MH 1, 050 MH Focus groups 20 groups 30 groups Container types 7 containers 3 containers Production runs 280 runs 520 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. 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?Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B 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 final answers to 2 decimal places.) Plantwide overhead rate per case Complete this question hr enterlng your answers In the tells below. Using the plantwide overhead rate, determine the total cost per case for the two products lfthe 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.) Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line
