Question: saras salsa company produces its condiments in two types extra...
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
|Department 1||Mixing||$||7,000||Machine hours||2,900|
|Department 2||Machine calibration||$||350,000||Production runs||700|
|Labeling||18,500||Cases of output||140,000|
|Defects||9,500||Cases of output||140,000|
|Support||Recipe formulation||$||89,000||Focus groups||50|
|Heat, lights, and water||58,000||Machine hours||2,900|
|Materials handling||85,000||Container types||10|
Additional production information about its two product lines follows.
|Extra Fine||Family Style|
4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $11 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.)