Check my work Problem 17-5A Pricing analysis with ABC and a plantwide overhead rate LO A1, A2, P1, P3 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. Solso 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 $ 6,200 Machine hours 2,600 Cooking 12,000 Machine hours 2,600 Product testing 114,200 Batches $132,400 Department 2 Machine calibration $335,000 Production runs Labeling 17,000 Cases of output 160,000 Defects 7,000 Cases of output 160,000 $ 359,000 Support Recipe formulation $ 86,000 Focus groups Heat, lights, and water 52,000 Machine hours 2,600 Materials handling 82,000 Container types $220,000 1,000 800 80 10 Additional production information about its two product lines follows. Extra Fine Family Style Units produced 37,000 cases 123,000 cases Batches 370 batches 630 batches Machine hours 1,108 MH 1,500 MH Focus groups 62 groups 18 groups Container types 9 containers 1 containers Production runs 280 runs 520 runs Prev 1 GO 2 3 of 3 Next > Problem 17-5A Parts 1, 2 & 3 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 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 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 Reg 2 Req 3A Reg 38 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.) Pianwide overhead rato per caso Reg 2 > Reg 1 Reg 2 Req 3A Reg 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 $9 per case of Extra Fine and $8 per case of Family Style. (Round your intermediate calculations and final answers to 2 decimal places.) Total cost per unit Extra Fine Family Style unit unit Req1 Reg 3A > LOLII LAS Vi ramy sie did 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct laba cost is $9 per case of Extra Fine and $8 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 $12 per case, determine th- 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. Req1 Reg 2 Req Reg 38 If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 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 Profit Loss Prev 1 2 3 of 3 Next >