[The following information applies to the questions displayed below.] 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 $ 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 9,000 Cases of output 180,000 $ 372,000 Support Recipe formulation $ 88,000 Focus groups 40 Heat, lights, and water 42,000 Machine hours 2,800 Materials handling 84,000 Container types 8 $ 214,000 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 runs rev: 06_09_2018_QC_CS-128873 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 $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 profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line?