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(Solution Download) SaraAc??cs Salsa Company produces its condiments in two types: Extra Fine for restaurant customer


 

 

 

 

 

 

 

SaraAc??cs 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 its production support activities

 

follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  ProcessActivity

 

Overhead cost

DriverQuantity
  Department 1  Mixing$5,800  Machine hours

 

2,200   

  Cooking12,900  Machine hours2,200

 

   

  Product testing113,800  Batches1,000

 

   

$132,500
  Department 2  Machine

 

calibration

$315,000  Production runs500

 

   

  Labeling20,000  Cases of output145,000

 

   

  Defects9,000  Cases of output145,000

 

   

$344,000
  Support  Recipe

 

formulation

$82,000  Focus groups40

 

   

  Heat, lights, and

 

water

33,000  Machine hours2,200

 

   

  Materials

 

handling

78,000  Container types8

 

   

$193,000

 

 

 

 

 

 

 

Additional production

 

information about its two product lines follows.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extra Fine

 

                 

 

Family Style

 

                

  Units produced33,000cases112,000cases
  Batches330batches670batches
  Machine hours900MH1,300MH
  Focus groups30groups10groups
  Container types6containers2containers
  Production runs240runs260runs

 

 

 

 

 

 

 

 

 

 

 

 

Using ABC, compute the total cost per case for each product type

 

if the direct labor and direct materials 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.)

 

 

 

Show transcribed image text 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 its production support activities follow. Using ABC, compute the total cost per case for each product type if the direct labor and direct materials 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.)

 


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