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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 Activity Overhead cost Driver Quantity 2,600 2,600 1,000 Process Department 1 ixing Cooking Product testing 6,200 Machine hours Machine hours 12,000 114,200 Batches $132,400 Production runs 800 Machine calibration $335,000 17,000 7,000 Department 2 Labeling Cases of output 160,000 160,000 Cases of output Defects $359,000 Recipe formulation Heat, lights, and water Materials handling $86,000 52,000 82,000 80 Support Focus groups Machine hours 2,600 Container types 10 $220,000 Additional production information about its two product lines follows. Extra Fine Family Style Units produced 37,000 cases 123,000 cases 370 batches 630 batches Batches Machine hours 1,500 18 groups 1 containers 520 runs 1,100 62 groups Focus groups Container types 9 containers 280 runs Production runs 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $9 per case of Extra Fine and $8 per case of Family Style. (Round your Intermedlate calculations to 2 declmal places. Round "Activity Rate" and "Overhead cost per unit" answers to 2 decimal places.) Extra fine Family Style Overhead Overhead Overhead Cost Activity Drivers Activity Rate Activity Drivers Activity Drivers Activity assigned assigned 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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