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 $ 5,500 11,600 113,500 Driver Quantity 1,900 1,900 1,000 Department 1 Mixing Cooking Product testing Machine hours Machine hours Batches $130,600 Department 2 Machine calibration Labeling $300,000 Production runs 400 Cases of output Cases of output 15,000 120,000 Defects 9,000 120,000 $324,000 Support Recipe formulation Heat, lights, and water Materials handling $100,000 38,000 75,000 FOcus groups Machine hours 40 1,900 Container types 12 $213,000 Additional production information about its two product lines follows. Extra Fine Family Style 90,000 cases 700 batches 1,150 M 10 groups 3 containers Units produced 30,000 cases 300 batches Batches Machine hours Focus groups Container types Production runs 750 MH 30 group 9 containers 210 runS 190 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 $6 per case of Extra Fine and $5 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $15 per case and the market price of Family Style Salsa is $10 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 38 Req 1 Req 2 Req 3A Using alplantwide 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 er case Reg 1 Req 2 Required: 1. Using a plantwide overhead rate based on cases, compute the overhead cost that iis 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 $6 per case of Extra Fine and $5 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $15 per case and the market price of Family Style Salsa is $10 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 38 Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $6 per case of Extra Fine and $5 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit Extra Fine unit Family Style unit Reg 3A Req 1
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