Located in a small town in upstate New York, Terry's Bakery operates a facility that makes pies for retail sale. The facility has the capacity to make 36,000 pies annually. The plant has only two customers, Panama Food Mart and East Street Coffee. Annual orders for Panama total 18,000 pies, and annual orders for East Street total 9,000 pies. Terry's makes the pies fresh every day and carries no inventory. It also ensure that the customers only sell freshly made pies as well. Variable manufacturing costs are $4.20 per pie, and annual fixed manufacturing costs are $97,200.

The pie business in this town has two seasons, summer and winter. Each season lasts exactly six months. Panama Food Mart orders 9,000 pies in the summer and 9,000 pies in the winter. East Street Coffee is closed in the winter and orders all 9,000 pies in the summer.

The owner of Terry's Bakery now believes that there are really three seasons instead of two, the third being the fall and spring (as a combined season). Each of the three seasons lasts exactly four months. They also know that East Street Coffee opens in mid-spring and closes in mid-fall.

The manager at Terry's checks the order patterns and sees the following demand (in pies) in each of the three seasons:

Winter	Fall and Spring	Summer	Total
Panama Food Mart	6,000	6,000	6,000	18,000
East Street Coffee	0	3,000	6,000	9,000
Total	6,000	9,000	12,000	27,000

Required:

Design the cost system for Terry's Bakery showing the capacity costs and capacity in each season.

Note: Round "Rate" and "Variable cost" to 2 decimal places.

Capacity costs	winter	fall/spring	summer
toatl
unused
used
charge for unused
total capacity costs
Production (pies)
Rate
Variable cost
Toatl cost