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4. Using ABC, compute the total cost per case for each product type it the direct labor and direct materials cost is $9 per case
4. Using ABC, compute the total cost per case for each product type it the direct labor and direct materials cost is $9 per case of Extra Fine and $8 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.) 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. Activity Process Department 1 Overhead cost $ 6,200 12,000 114,200 $ 132,400 Driver Machine hours Machine hours Batches Quantity 2,600 2,600 1,000 Cooking Product testing Department 2 Machine calibration Labeling Defects Production runs Cases of output Cases of output 800 160,000 160,000 $ 335,000 17,000 7,000 $ 359,000 $ 86,000 52,000 82,000 $ 220,000 Support 80 Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 2,600 10 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 37,000 cases 370 batches 1,100 MH 62 groups 9 containers 280 runs Family Style 123,000 cases 630 batches 1,500 MH 18 groups 1 containers 520 runs 5. If the market price is $17 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.)
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