Remington Agricultural Products $($RAP$)$ produces organic cider with no preservatives. Any production must be sold within a few days,

so producing for inventory is not an option. RAP's single plant has the capacity to make $75,240$ cases of cider annually. Currently, RAP

sells to only two customers: Savery's Organic Produce $($SOP$)$ and Griswold Food Stores $($a chain of grocery stores$).$ SOP orders $37,620$

cases and Griswold orders $12,540$ cases annually. Variable manufacturing costs are $$24$ per case, and annual fixed manufacturing

costs are $$902,880.$

The organic cider business has two seasons, holidays and nonholidays. The holiday season lasts exactly four months $($although it feels

longer$),$ and the nonholiday season lasts eight months. SOP orders the same amount each month, so SOP orders $12,540$ packages

during the holidays and $25,080$ packages in the nonholiday season. Griswold only carries the organic cider during the holidays.

Required:

a$.$ Calculate the product cost for each season with excess capacity costs assigned to season in which it is incurred.

b$.$ Calculate the product cost for each season with excess capacity costs assigned to the season requiring it$.$

Complete this question by entering your answers in the tabs below.

Calculate the product cost for each season with excess capacity costs assigned to season in which it is incurred.