Question: Required information Problem 04-5A Pricing analysis with ABC and a plantwide overhead rate LO A1, A2, P1, P3 [The following information applies to the questions

 Required information Problem 04-5A Pricing analysis with ABC and a plantwideoverhead rate LO A1, A2, P1, P3 [The following information applies to

Required information Problem 04-5A 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. 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 1,000 1,000 600 Department 2 Machine calibration Labeling Defects Overhead cost $ 4,600 10,500 112,600 $ 127,700 $ 255,000 12,500 7,000 $ 274,500 $ 91,000 28,000 66,000 $ 185,000 Production runs Cases of output Cases of output 500 130,000 130,000 Support 50 Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 1,000 8 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 21,000 cases 210 batches 300 MH 32 groups 7 containers 210 runs Family Style 109,000 cases 390 batches 700 MH 18 groups 1 containers 290 runs Problem 04-5A Part 4 4. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $4 per case of Extra Fine and $3 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 Overhead Cost Family Style Activity Drivers Activity Drivers Activity Rate Overhead assigned Activity Drivers Overhead assigned Activity Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Extra fine Family Style

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!