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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 Overhead cost Mixing Cooking Product testing Driver $4,600 Machine hours 11,600 Machine hours Quantity 2.700 2,700 600 114,300 Batches $ 130,500 340,000 Production runs 20,000 Cases of output 7,000 Cases of output 800 135,000 135,000 Department 2 Machine calibration Labeling Defects $ 367000 Support $ 87,000 Focus groups Recipe formulation Heat, lights, and water Materials handling 54,000 Machine hours 83,000 Container types 75 2,700 224,000 Additional production information about its two product lines follows. Extra Fine Family Style Units produced Batches Machine hours Focus groups Container types Production runs 38,000 cases 97,000 cases 380 batches 1,150 MH 220 batches 1,550 MH 64 groups 11 groups 5 containers 3 containers 290 runs 510 runs
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