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 Quantity 1,900 1,900 1,000 Department 2 Machine calibration Labeling Defects Overhead cost Driver $ 5.500 Machine hours 11,600 Machine hours 113.500 Batches $130,600 $300,000 Production runs 15,000 Cases of output 9,000 Cases of output $324,000 $100,000 Focus groups 38,000 Machine hours 75,000 Container types $213,000 400 120,000 120,000 Support Recipe formulation Heat, lights, and water Materials handling 1.900 Additional production information about its two product lines follows. Units produced Batehes Machine hours Focus groups Container types Production runs Extra Fine 30,000 cases 300 batches 750 MH 30 groups 9 containers 210 runs Family Style 90,000 cases 700 batches 1,150 MM 10 groups 3 containers 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. Reg 1 Reg 2 Reg Reg 38 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 per case Reg 2 > 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $6 per case of Extra Fine and $5 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.) Activity Overhead Cost Activity Drivers Extra fine Activity Rate Activity Drivers Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Total overhead costs assigne Extra fine Family Style type if the direct labor and direct materials cost is $6 per case of Extra calculations to 2 decimal places. Round "Activity Rate" and Extra fine Family Style Activity Drivers Activity Rate Overhead assigned Activity Drivers Overhead assigned Total overhead costs assigned Extra fine Family Style Help Save & Exit Submit Defects Cases of output 120,000 Support Recipe formulation Heat, lights, and water Materials handling 9,000 $324,000 $100,000 38,000 75,000 $ 213,000 Focus groups Machine hours Container types 40 1,900 12 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 30,000 cases 300 batches 250 MH 30 groups 9 containers 210 runs Family Style 90,000 cases 700 batehes 1,150 MH 10 groups 3 containere 190 runs 5. If the market price is $15 per case of Extra Fine and $10 per case of Family Style, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style
