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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

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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 Department 1 Activity Mixing Cooking Product testing Driver Machine hours Machine hours Batches Quantity 2,000 2,000 800 Department 2 Machine calibration Labeling Defects Overhead cost $ 5,600 11,200 113,600 $130,400 $305,000 17,500 4,500 $327,000 $ 80,000 38,000 76,000 $194,000 Production runs Cases of output Cases of output 400 110,000 110,000 Support 80 Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 2,000 8 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 31,000 cases 310 batches 800 MH 55 groups 6 containers 220 runs Family Style 79,000 cases 490 batches 1,200 MH 25 groups 2 containers 180 runs 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $7 per case of Extra Fine and $6 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.) Extra fine Family Style Activity Drivers Overhead Cost Activity Drivers Activity Rate Overhead assigned Activity Drivers Overhead assigned Activity Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Extra fine Family Style 5. If the market price is $16 per case of Extra Fine and $11 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

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