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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 customers
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 Department 1 Activity Mixing Cooking Product testing Driver Machine hours Machine hours Batches Quantity 1,000 1,000 600 Department 2 Machine calibration Labeling Defects Overhead cost $ 4,600 10,500 112,600 $ 127,700 $ 255,000 12,500 7,000 $ 274,500 $ 91,000 28,000 66,000 $ 185,000 Production runs Cases of output Cases of output 500 130,000 130,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 50 1,000 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 21,000 cases 210 batches 300 MH 32 groups 7 containers 210 runs Family Style 109,000 cases 390 batches 700 MH 18 groups 1 containers 290 runs 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $4 per case of Extra Fine and $3 per case of Family Style. (Round your intermediate calculations to 2 decimal places. Round "Activity Rate" and "Overhead cost per unit" answers to 2 decimal places.) Extra fine Family Style Overhead Cost Activity Drivers Activity Rate Activity Drivers Overhead assigned Activity Drivers Overhead assigned Activity Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Total overhead costs assigned Extra fine Family Style
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