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14. Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and...

14.

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 Activity Overhead cost Driver Quantity
Department 1 Mixing $ 5,200 Machine hours 1,600
Cooking 10,800 Machine hours 1,600
Product testing 113,200 Batches 500
$ 129,200
Department 2 Machine calibration $ 285,000 Production runs 750
Labeling 10,500 Cases of output 155,000
Defects 5,000 Cases of output 155,000
$ 300,500
Support Recipe formulation $ 97,000 Focus groups 50
Heat, lights, and water 34,000 Machine hours 1,600
Materials handling 72,000 Container types 8
$ 203,000


Additional production information about its two product lines follows.

Extra Fine Family Style
Units produced 27,000 cases 128,000 cases
Batches 270 batches 230 batches
Machine hours 600 MH 1,000 MH
Focus groups 40 groups 10 groups
Container types 6 containers 2 containers
Production runs 270 runs 480 runs

4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $10 per case of Extra Fine and $9 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 Overhead Cost Activity Drivers Activity Rate Activity Drivers Overhead assigned Activity Drivers Overhead assigned
Mixing & Cooking
Product testing
Machine calibration
Labeling & Defects
Recipe formulation
Heat, light and water
Material handling
Extra fine Family Style

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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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 5,800 Machine hours 2,200 Cooking 12,900 Machine hours 2,200 Product testing 113,800 Batches 1,000 $ 132,500 Department 2 Machine calibration...
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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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 5,800 Machine hours 2,200 Cooking 12,900 Machine hours 2,200 Product testing 113,800 Batches 1,000 $ 132,500 Department 2 Machine calibration...
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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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 5,800 Machine hours 2,200 Cooking 12,900 Machine hours 2,200 Product testing 113,800 Batches 1,000 $ 132,500 Department 2 Machine calibration...
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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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 6,000 Machine hours 2,400 Cooking 10,800 Machine hours 2,400 Product testing 114,000 Batches 750 $ 130,800 Department 2 Machine calibration...
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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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 6,100 Machine hours 2,500 Cooking 10,900 Machine hours 2,500 Product testing 114,100 Batches 500 $ 131,100 Department 2 Machine calibration...
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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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 5,600 Machine hours 2,000 Cooking 11,200 Machine hours 2,000 Product testing 113,600 Batches 800 $ 130,400 Department 2 Machine calibration...
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family...
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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,600 Machine hours 2,700 Cooking 11,600 Machine hours 2,700 Product testing 114,300 Batches 600 $ 130,500 Department 2 Machine calibration...
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use.
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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 5,300   Machine hours 1,700   Cooking   10,000   Machine hours 1,700   Product testing   113,300   Batches...
[The following information applies to the questions displayed below.] Sara’s Salsa Company produces its condiments in...
[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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,700 Machine hours 1,100 Cooking 10,700 Machine hours 1,100 Product testing...
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