Question

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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,500 Machine hours 1,500 Cooking 11,250 Machine hours 1,500 Product testing 112.500 Batches 600 $ 128, 250 Department 2 Machine calibration $ 250,000 Production runs 400 Labeling 12,000 Cases of output 120,000 Defects 6,000 Cases of output 120,000 $ 268,000 Support Recipe formulation $ 90,000 Focus groups Heat, lights, and water 27,000 Machine hours 1,500 Materials handling 65,000 Container types $182,000 45 B Additional production information about its two product lines follows. Extra Pine Family Style Units produced 20,000 cases 100,000 cases Batches 200 batches 400 batches Machine hours 500 MH 1,000 MH Focus groupe 30 groups 15 groups Container types 5 containers containers Production runs 200 run 200 runs

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Sara’s Salsa Company
Calculation of total overhead				Activity Usages
Process	Activity cost pool	Cost Driver	Cost	Extra Fine	Family Style	Total	ABC rates
Department 1	Mixing	Machine hours	4,500.00	500.00	1,000.00	1,500.00	3.00
	Cooking	Machine hours	11,250.00	500.00	1,000.00	1,500.00	7.50
	Product testing	Batches	112,500.00	200.00	400.00	600.00	187.50
	Total Cost assigned		128,250.00
				Activity Usages
Process	Activity cost pool	Cost Driver	Cost	Extra Fine	Family Style	Total	ABC rates
Department 2	Machine calibration	Production runs	250,000.00	200.00	200.00	400.00	625.00
	Labeling	Cases of outputs	12,000.00	20,000.00	100,000.00	120,000.00	0.10
	Defects	Cases of outputs	6,000.00	20,000.00	100,000.00	120,000.00	0.05
	Total Cost assigned		268,000.00
				Activity Usages
Process	Activity cost pool	Cost Driver	Cost	Extra Fine	Family Style	Total	ABC rates
Support	Recipe formulation	Focus groups	90,000.00	30.00	15.00	45.00	2,000.00
	Heat, lights and water	Machine hours	27,000.00	500.00	1,000.00	1,500.00	18.00
	Material Handling	Container types	65,000.00	5.00	3.00	8.00	8,125.00
	Total Cost assigned		182,000.00
	Total Overhead costs		578,250.00
	Allocation table			Extra Fine	Family Style
Process	Activity cost pool	Cost Driver	ABC Rates	Activity used	Cost assigned	Activity used	Cost assigned
Department 1	Mixing	Machine hours	3.00	500.00	1,500.00	1,000.00	3,000.00
	Cooking	Machine hours	7.50	500.00	3,750.00	1,000.00	7,500.00
	Product testing	Batches	187.50	200.00	37,500.00	400.00	75,000.00
Department 2	Machine calibration	Production runs	625.00	200.00	125,000.00	200.00	125,000.00
	Labeling	Cases of outputs	0.10	20,000.00	2,000.00	100,000.00	10,000.00
	Defects	Cases of outputs	0.05	20,000.00	1,000.00	100,000.00	5,000.00
Support	Recipe formulation	Focus groups	2,000.00	30.00	60,000.00	Add a comment Know the answer? Add Answer to: Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family... Your Answer: Post as a guest Your Name: What's your source? Earn Coins Coins can be redeemed for fabulous gifts. Log In Sign Up Post as anonymous Post Your Answer Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free. Similar Homework Help Questions Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family... 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. 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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 2,600 2,600 1,000 Department 2 Machine calibration Labeling Defects Overhead cost $ 6,200 12,000 114,200... Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family... 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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,500 Machine hours 1,500 Cooking 11,250 Machine hours 1,500 Product testing 112,500 Batches 600 $ 128,250 Department 2 Machine calibration... Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family... 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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 5,300 Machine hours 1,700 Cooking 10,000 Machine hours 1,700 Product testing 113,300 Batches 550 $ 128,600 Department 2 Machine calibration... Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family... 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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,800 Machine hours 1,200 Cooking 11,100 Machine hours 1,200 Product testing 112,800 Batches 750 $ 128,700 Department 2 Machine calibration... Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home... 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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,600 Machine hours 2,700 Cooking 11,600 Machine hours 2,700 Product testing 114,300 Batches 600 $ 130,500 Department 2 Machine calibration... Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family... 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 Activity Overhead cost Driver Quantity Department 1 Mixing $ 6,000 Machine hours 2,400 Cooking 10,800 Machine hours 2,400 Product testing 114,000 Batches 750 $ 130,800 Department 2 Machine calibration... HOW DO I CALCULATE? Sara's Salsa Company produces its condiments in two types: Extra Fine for... HOW DO I CALCULATE? 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 Quantity 1,000 1,000 600 Department 2 Machine calibration Labeling Defects Overhead cost Driver $ 4.600 Machine hours 10,500... please follow format Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant... please follow format Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers an 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. rocess os Department 1 Mixing $ 5,200 Machine hours Cooking Product testing 1,600 1,600 500 10,800 Machine hours 113200 Batches $129,200 285, 000 Production runs Department 2... ADVERTISEMENT Free Homework Help App Download From Google Play Scan Your Homework to Get Instant Free Answers Need Online Homework Help? 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