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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
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 Overhead cost $ 5,100 10,800 113,100 Driver Machine hours Machine hours Batches Quantity 1,500 1,500 1,000 $ 129,000 Department 2 Machine calibration $ 280,000 Production runs 700 Labeling Defects 10,000 4,500 Cases of output Cases of output 145,000 145,000 $ 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 260 runs 5 containers Family Style 119,000 cases 740 batches 950 MH 25 groups 3 containers 440 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 $6 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 Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Overhead Cost Activity Drivers Activity Rate Extra fine Family Style Activity Drivers Overhead assigned Activity Drivers Overhead assigned Extra fine Family Style
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