Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $ 5,400 Machine hours 1,800 Cooking 11,700 Machine hours 1,800 Product testing 113,400 Batches 600 $130,500 Department 2 Machine calibration $295,000 Production runs 400 Labeling 16,500 Cases of output 100,000 Defects 5,500 Cases of output 100,000 $317,000 Support Recipe formulation $ 99,000 Focus groups 55 Heat, lights, and water 36,000 Machine hours 1,800 Materials handling 74,000 Container types 10 $ 209,000 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 29,000 cases 290 batches 700 MH 25 groups 8 containers 200 runs Family Style 71,000 cases 310 batches 1,100 MH 38 groups 2 containers 200 runs Dandi Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 29,000 cases 290 batches 700 MH 25 groups 8 containers 200 runs Family Style 71,000 cases 310 batches 1,100 MH 30 groups 2 containers 200 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 $5 per case of Extra Fine and $4 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa Is $9 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 Red 3A 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 rate por case Reg 2 > Required: 1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra 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 an cost is $5 per case of Extra Fine and $4 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa is $9 per case, di 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 Req Reg 3B Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $5 per case of Extra Fine and $4 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit unit Extra Fine Family Style unit Production runs 200 runs 200 runs Required: 1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fines 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 direc cost is $5 per case of Extra Fine and $4 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa is $9 per case, determin 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 Req Reg 3B If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa is $9 per case, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 29,000 cases 290 batches 700 MH 25 groups 8 containers 200 runs Family Style 71,000 cases 310 batches 1,100 MH 30 groups 2 containers 200 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 $5 per case of Extra Fine and $4 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa is $9 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 Req 2 Reg Reg 38 What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salso product line

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internal Auditor At Work A Practical Guide To Everyday Challenges

Authors: K. H. Spencer Pickett

1st Edition

0471458392, 978-0471458395

More Books

Students also viewed these Accounting questions