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 10,800 113,100 $ 129,000 Overhead cost $ 5,100 Driver Machine hours Machine hours Batches Quantity 1,500 1,500 1,000 Department 2 Machine calibration $ 280,000 Production runs 700 Labeling 10,000 Cases of output 145,000 Defects 4,500 Cases of output 145,000 $294,500 Support Recipe formulation $ 96,000 Focus groups 75 Heat, lights, and water Materials handling 33,000 71,000 Machine hours Container types 1,500 8 $ 200,000 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 26,000 cases 260 batches 550 MH 50 groups 5 containers 260 runs Family Style 119,000 cases 740 batches 950 MH 25 groups 3 containers 440 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 $9 per case of Extra Fine and $6 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $18 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?