Question

Required information [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 1,500 1,500 1,000 Department 2 Machine calibration Labeling Defects Overhead cost $ 5,100 10,800 113,100 $ 129,000 $ 280,000 10,000 4,500 $ 294,500 $ 96,000 33,000 71,000 $ 200,000 Production runs Cases of output Cases of output 700 145,000 145,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 1,500 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 26,000 cases 260 batches 550 MH 50 groups 5 containers 260 runs Family Style 119,000 cases 740 batches 950 MH 25 groups 3 containers 440 runs

*Answer in table format for easier visualization would be appreciated, thanks.

Answer 1

										Extra fine			Family style
			overhead	Avtivity Driver			Activity rate			Activity Drivers		overhead	Activity Drivers		overhead
4)	Activity		cost									assinged			assinged
	Mixing & cooking		15,900	1,500	machine hours		10.6	per machine hour		550		5830	950		10070
	product testing		113,100	1000	Batches		113.1	per batch		260		29406	740		83694
	Machine Calibration		280,000	700	production run		400	per production run		260		104000	440		176000
	Labeling & Defects		14,500	145,000	cases of output		0.1	per case		26000		2600	119,000		11900
	Recipe formulation		96,000	75	Focus groups		1280	per focus group		50		64000	25		32000
	heat,light and water		33,000	1,500	machine hours		22	per machine hour		550		12100	950		20900
	Material handling		71,000	8	container type		8875	per container type		5		44375	3		26625
			623,500							total OH cost assign		262311	total OH cost assign		361189
										total units produced		26,000	total units produced		119,000
										oh cost per unit		10.09	oh cost per unit		3.04
									Extra	Family
									fine	Style
						Direct materials & direct labor			9.00	6.00
						overhead			10.09	3.04
						tota cost/case			19.09	9.04
	5)	Extra Fine		loss	-1.09
		Family Style		profit	0.96