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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 1,200 1,200 750 Department 2 Machine calibration Labeling Defects Overhead cost $ 4,880 11,180 112,800 $ 128,700 $ 265,000 10,000 6,500 $ 281,500 $ 93,000 30,000 68,000 $191,080 Production runs Cases of output Cases of output 400 165,000 165,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 60 1,200 10 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 23,888 cases 230 batches 400 MH 30 groups 7 containers 230 runs Family Style 142,eee cases 520 batches 800 MH 3e groups 3 containers 170 runs 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $6 per case of Extra Fine and $5 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 Drivers Family Style Activity Drivers Overhead Cost Activity Drivers Activity Rate Overhead assigned Overhead assigned Activity Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Extra fine Family Style
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