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?

Reg 1 Reg 2 Req Req 3B 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.) Plantwide overhead rate per case Req 1 Reg 2 Req 3A Req 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 $11 per case of Extra Fine and $7 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit unit Extra Fine Family Style unit Req 1 Reg 2 Req Req 3B 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. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style Req 1 Req 2 Req Req 3B What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line 5. If the market price is $19 per case of Extra Fine and $12 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