Required information The fowowing informastion appies to the questions displayed

Question

Required information The fowowing informastion appies to the questions displayed below Sara's Salse Compeny produces its condiments in two types: Extre Fine for restaurant customers and Femily Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overheed costs, and drivers associated with these two manufacturing processes and the company's production support activities follow Pert 3 of 3 5.400 ahine hosES 0.400ahine hesr Produat testing ,00 $ 273,000 froduetieeruns 4,300Cases of ostput abeling Cases ot support Reeige formulation 95.400 Feus groupe ,400 Rateriaie hanet ing Container sypes Additional preduction information about its two product lines follows EEA Trine 5,000 e 15,000 sse 27 group 13 group 250 ruaa 50 ran 5. If the market price is $17 per case of Extra Fine and $10 per case of Family Style, determine oroduct, Round vour intermediate calculations and final answers to 2 decimal olaces. gross profit per case for each

Explanation / Answer

Activity Overhead Cost Activity Drivers Activity Rate Mixing and cooking 15400 1400 machine hours 11.00 per machine hours Production testing 113000 1000 batches 113.00 per batch Machine calibration 275000 500 runs 550.00 per run Labeling and Defects 21000 140000 cases 0.15 per case Recipe formulation 95000 40 groups 2375.00 per group Heat, light and water 28000 1400 machine hours 20.00 per machine hour Materials handling 70000 8 container types 8750.00 per type Extra fine Family Style Activity Activity Drivers Activity Rate Overhead assigned Activity Activity Drivers Activity Rate Overhead assigned Mixing and cooking 500 11.00 5500 Mixing and cooking 900 11.00 9900 Production testing 250 113.00 28250 Production testing 750 113.00 84750 Machine calibration 250 550.00 137500 Machine calibration 250 550.00 137500 Labeling and Defects 25000 0.15 3750 Labeling and Defects 115000 0.15 17250 Recipe formulation 27 2375.00 64125 Recipe formulation 13 2375.00 30875 Heat, light and water 500 20.00 10000 Heat, light and water 900 20.00 18000 Materials handling 4 8750.00 35000 Materials handling 4 8750.00 35000 Overhead assigned 284125 Overhead assigned 333275 Total units produced 25000 Total units produced 115000 Overhead cost per unit 11.37 Overhead cost per unit 2.90 Extra fine Family Style Direct material and Labor 8 7 Overhead cost per unit 11.37 2.90 Total Cost 19.37 9.90 Sales Price 17 10 Gross Profit/-loss -2.37 0.10 Extra fine Loss -2.37 Family Style Profit 0.10

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