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. Theactivities, overhead costs, and drivers associated with thesetwo manufacturing processes and the company’s production supportactivities follow.
Additional production information about its two product linesfollows.
Problem 17-5A Part 4
4. Using ABC, compute the total cost percase for each product type if the direct labor and direct materialscost is $6 per case of Extra Fine and $5 per case of FamilyStyle. (Round your intermediate calculations to 2decimal places. Round "Activity Rate" and "Overhead cost per unit"answers to 2 decimal places.)
Sara S Salsa Company Produces Its Condiments In Two Types Extra Fine For Restaurant Customers And Family Style For Home 1 (73.93 KiB) Viewed 15 times
Activity Mixing & Cooking Product testing Machine calibration Labeling & Defects Recipe formulation Heat, light and water Material handling Overhead Cost Activity Drivers Activity Rate Extra fine Extra fine Activity Drivers Family Style Overhead assigned
Extra fine Extra fine Activity Drivers Family Style Overhead assigned Family Style Activity Drivers 3 Overhead assigned 0
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