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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 department
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 Driver Machine hours Machine hours Batches Quantity 2,500 2,500 500 Department 2 Machine calibration Labeling Defects Overhead cost $ 6,100 10,900 114,100 $ 131, 100 $ 330,000 16,500 9,000 $ 355,500 $ 85,000 43,000 81,000 $ 209,000 Production runs Cases of output Cases of output 600 170,000 170,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 85 2,500 10 Additional production information about its two product lines follows. Units produced Batches Machine hours Extra Fine 36,000 cases 360 batches 1,050 MH Family Style 134,000 cases 140 batches 1,450 MH Extra Fine 36,000 cases 360 batches 1,050 MH Units produced Batches Machine hours Focus groups Container types Production runs Family Style 134,000 cases 140 batches 1,450 MH 25 groups 2 containers 330 runs 60 groups 8 containers 270 runs . Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $8 per case of Extra ine and $7 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.) Extra fine Activity Overhead Cost Activity Drivers Activity Rate Activity Drivers Overhead assigned $ 2,500 machine hours 17,000 114,100 500 batches 330,000 600 runs Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling 9,165 170,000 cases 85,000 85 groups 43,000 2,500 machine hours 10 container types 81,000 per case for each product type if the direct labor and direct materials cost is $8 per case of Extra (Round your intermediate calculations to 2 decimal places. Round "Activity Rate" and 2 decimal places.) Extra fine Family Style st Activity Drivers Activity Rate Activity Drivers Overhead assigned Activity Drivers Overhead assigned 100 2,500 machine hours 100 500 batches 600 runs 100 165 170,000 cases 100 85 groups 100 2,500 machine hours 100 10 container types Total overhead costs assigned Extra fine Family Style 5. If the market price is $16 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
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