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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
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 1,400 1,400 1,000 Department 2 Machine calibration Labeling Defects Overhead cost $ 5,000 10,400 113,000 $ 128,400 $ 275,000 14,500 6,500 $ 296,000 $ 95,000 28,000 70,000 $ 193,000 Production runs Cases of output Cases of output 500 140,000 140,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 40 1,400 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 25,000 cases 250 batches 500 MH 27 groups 4 containers 250 runs Family Style 115,000 cases 750 batches 900 MH 13 groups 4 containers 250 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 $8 per case of Extra Fine and $7 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $10 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B 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 Req 1 Req 2 Req 3A Req 3B 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 $7 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit unit Extra Fine Family Style unit Req 1 Req 2 Req Req 3B If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $10 per case, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style Req 1 Req 2 Req Req 3B What might management conclude about the Family Style Salsa product line? Conclude about the Family Style Salsa product line Req 3A Req 3B > 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $8 per case of Extra Fine and $7 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 Activity Drivers Family Style Activity Drivers Activity Overhead Cost Activity Drivers Activity Rate Overhead assigned Overhead assigned | Moxing & 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 $17 per case of Extra Fine and $10 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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