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Saras 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 companys production support activities follow.

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. Driver Process Activity Overhead cost Quantity Department 1 Mixing 5,300 Machine hours 1700 Cooking 10,000 Machine hours 1,700 Product testing 113,300 Batches 550 128,600 290,000 Production runs Department 2 Machine calibration 800 130,000 Labeling 16,000 Cases of output 130,000 Defects 10,000 Cases of output 316,000 98,000 Focus groups Support Recipe formulation 50 Heat, lights, and water 34,000 Machine hours 1,700 Materials handling 73,000 Container types 10 205,000 Additional production information about its two product lines follows. Style Extra Fine Family Units produced 28,000 cases 102,000 cases Batches 280 batches 270 batches 1,050 MH Machine hours 650 MH 20 groups Focus groups 30 groups Container types 7 containers 3 containers 280 runs 520 runs Production runs

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