Saras 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 companys production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 7,000 Machine hours 2,900 Cooking 16,200 Machine hours 2,900 Product testing 114,500 Batches 500 $ 137,700 Department 2 Machine calibration $ 350,000 Production runs 700 Labeling 18,500 Cases of output 140,000 Defects 9,500 Cases of output 140,000 $ 378,000 Support Recipe formulation $ 89,000 Focus groups 50 Heat, lights, and water 58,000 Machine hours 2,900 Materials handling 85,000 Container types 10 $ 232,000 Additional production information about its two product lines follows. Extra Fine Family Style Units produced 40,000 cases 100,000 cases Batches 400 batches 100 batches Machine hours 1,250 MH 1,650 MH Focus groups 32 groups 18 groups Container types 5 containers 5 containers Production runs 310 runs 390 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 $11 per case of Extra Fine and $7 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $19 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line?