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 Activity Overhead cost Driver Department 1 Mixing Quantity $ 5,100 Machine hours 1,500 Cooking 10,800 Machine hours 1,500 Product testing 113, 100 Batches 1,000 $129,000 Department 2 Machine calibration $ 280,000 Production runs 700 Labeling 10,000 Cases of output 145,000 Defects 4,500 Cases of output 145,000 $294,500 Support Recipe formulation $ 96,000 Focus groups 75 Heat, lights, and water 33,000 Machine hours 1,500 Materials handling 71,000 Container types $200,000 8 Additional production information about its two product lines follows. Extra Fine Family Style Units produced 26,000 cases 119,000 cases Batches 260 batches 740 batches Machine hours 550 MH 950 MH Focus groups 50 groups 25 groups Container types 5 containers 3 containers Production runs 260 runs 440 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 $9 per case of Extra Fine and $6 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $18 per case and the market price of Family Style Salsa is $10 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Req30 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 (Round your intermediate calculations and final answers to 2 decimal places) Planwide overhead role por caso Reg 2 > Reg 1 Reg 2 Req Reg 3B Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $9 per case of Extra Fine and $6 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit Extra Fino Family Style unit unit Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 38 If the market price of Extra Fine Salsa is $18 per case and the market price of Family Style Salsa is $10 per case, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req Reg 3B What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line Req 3A Hea 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.) Overhead Cost Activity Drivers Activity Rate Act Activity Mading & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heal, light and water Material handling Total overhe Extra fine Extra fine Family Style Activity Drivers Activity Rate Overhead assigned Activity Drivers Overhead assigned Total overhead costs assigned Extrafine Family Style Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 26,000 cases 260 batches 550 MH 50 groups 5 containers 260 runs Family Style 119,000 cases 740 batches 950 MH 25 groups 3 containers 440 runs Problem 04-5A Part 5 5. If the market price is $18 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
