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Required information [The following information applies to the questions displayed below.] 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 Quantity Department 1 Mixing $ 4,700 Machine hours 2, 800 Cooking 15,600 Machine hours 2, 800 Product testing 114, 400 Batches 650 $ 134, 700 Department 2 Machine calibration $ 345,000 Production runs 750 Labeling 18, 000 Cases of output 180,000 Defects 9,900 cases of output 180, 000 $ 372,900 Support Recipe formulation $ 88, 900 Focus groups 40 Heat, lights, and water 42,000 Machine hours 2,800 Materials handling 84, 900 Container types 8 $ 214,900 Additional production information about its two product lines follows. Extra Fine Family Style Units produced 39, 000 cases 141, 000 cases Batches 390 batches 260 batches Machine hours 1, 200 MH 1, 600 MH Focus groups 30 groups 10 groups Container types 4 containers 4 containers Production runs 300 runs 450 runsRequired: 1. Using a plantwide overhead rate based on cases, compute the overhead costthat is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa. 1 Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $8 per case of Extra Fine and $9 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $14 per case and the market price of Family Style Salsa is $12 per case, determine the gross prot per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Complete this question by entering wur answers in the tabs below. Reg 1 Reg 2 Reg 3A Req BB Using a plantwide overhead rate based on cases, compute the overhead dust that is assigned to each case of Extra Fine Salsa and each case of Familyr Style Salsa. (Round your intermediate calculations and nal answers to 2 decimal places.) Using the plantwide overhead rate, determine the total cost per case for the two producb; if the direct materials and direct labor cost is $8 per case of Extra Fine and $9 per case of Family Style. (Round your intermediate calculations and nal answers to 2 decimal places.) Ifthe market price of Extla Fine Salsa is $14 per case and the market price of Family Style Salsa is $12 per case, determine the grunge prot per case for each product. {Round your intermediate calculations and nal answers to 2 decimal places.) Family Style Req 1 Req 2 Req 3A Req 3B What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line
