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[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

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[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 Department 1 Activity Mixing Cooking Product testing Driver Machine hours Machine hours Batches Quantity 1,199 1,100 700 Department 2 Machine calibration Labeling Defects Overhead cost $ 4,700 10,700 112,700 $ 128, 100 $ 260,000 11,000 4,500 $ 275,500 $ 92,000 22,000 67,000 $ 181,000 Production runs Cases of output Cases of output 500 155,000 155,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 40 1,100 10 Additional production information about its two product lines follows. Q Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 22,000 cases 220 batches 350 MH 25 groups 6 containers 220 runs Family Style 133,000 cases 480 batches 750 MH 15 groups 4 containers 280 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 $5 per case of Extra Fine and $4 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $16 per case and the market price of Family Style Salsa is $7 per case, determine the gross profit per case for each product 3.b. What might management conclude about the Family Style Salsa product line? 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $5 per case of Extra Fine and $4 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.) 5. If the market price is $16 per case of Extra Fine and $7 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.) 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 Reg 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 $5 per case of Extra Fine and $4 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit Extra Fine unit Family Style unit

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