Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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. Overhead Process Activity cost Driver Quantity Department Mixing $ 6,000 1 Machine hours 2,400 Cooking 10,800 Machine hours 2.400 Product testing 114,000 Batches 75e $130,00 Department Machine $325,000 Production 650 2 calibration runs Labeling 18,000 Cases of 160.ee output Defects 6,000 Cases of 160.ee output $349,00 Support Recipe formulation $ 84,000 Focus groups se Heat, lights, and 42.000 water Machine hours 2,400 Materials handling 80, eee Container 10 types $206,000 Additional production information about its two product lines follows Extra Fine Family Style Units 35,000 cases 125,000 cases produced Batches 350 batches 488 batches Machine hours 1,000 MH 1,400 MH Focus groups 34 groups 16 groups Container 4 containers 6 containers types Production 260 runs runs 390 runs 4. Using ABC, compute the total cost per case for each product type of the direct labor and direct materials cost is $7 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 Extra fine Activity Drivers Activity Drivers Activity Rate Overhead assigned Family Style Overhead Activity Drivers assigned Activity Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handing Extra fine Family Style
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started