7 10 points eBook Print 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 75,600 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 37,800 cases and Griswold orders 12,600 cases annually. Variable manufacturing costs are $25 per case, and annual fixed manufacturing costs are $907,200. 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 12,600 packages during the holidays and 25,200 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. References Complete this question by entering your answers in the tabs below. Required A Required B Calculate the product cost for each season with excess capacity costs assigned to season in which it is incurred. Non-holiday Holiday Product Cost per case per case < Required A Required B > 7 10 points eBook Print 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 75,600 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 37,800 cases and Griswold orders 12,600 cases annually. Variable manufacturing costs are $25 per case, and annual fixed manufacturing costs are $907,200. 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 12,600 packages during the holidays and 25,200 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. References Complete this question by entering your answers in the tabs below. Required A Required B Calculate the product cost for each season with excess capacity costs assigned to the season requiring it. Product Cost Non-holiday Holiday per case per case < Required A Required B >

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 2CE: Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of 52...
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eBook
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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 75,600 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 37,800
cases and Griswold orders 12,600 cases annually. Variable manufacturing costs are $25 per case, and annual fixed manufacturing
costs are $907,200.
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 12,600 packages
during the holidays and 25,200 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.
References
Complete this question by entering your answers in the tabs below.
Required A Required B
Calculate the product cost for each season with excess capacity costs assigned to season in which it is incurred.
Non-holiday
Holiday
Product Cost
per case
per case
< Required A
Required B >
Transcribed Image Text:7 10 points eBook Print 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 75,600 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 37,800 cases and Griswold orders 12,600 cases annually. Variable manufacturing costs are $25 per case, and annual fixed manufacturing costs are $907,200. 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 12,600 packages during the holidays and 25,200 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. References Complete this question by entering your answers in the tabs below. Required A Required B Calculate the product cost for each season with excess capacity costs assigned to season in which it is incurred. Non-holiday Holiday Product Cost per case per case < Required A Required B >
7
10
points
eBook
Print
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 75,600 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 37,800
cases and Griswold orders 12,600 cases annually. Variable manufacturing costs are $25 per case, and annual fixed manufacturing
costs are $907,200.
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 12,600 packages
during the holidays and 25,200 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.
References
Complete this question by entering your answers in the tabs below.
Required A Required B
Calculate the product cost for each season with excess capacity costs assigned to the season requiring it.
Product Cost
Non-holiday
Holiday
per case
per case
< Required A
Required B >
Transcribed Image Text:7 10 points eBook Print 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 75,600 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 37,800 cases and Griswold orders 12,600 cases annually. Variable manufacturing costs are $25 per case, and annual fixed manufacturing costs are $907,200. 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 12,600 packages during the holidays and 25,200 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. References Complete this question by entering your answers in the tabs below. Required A Required B Calculate the product cost for each season with excess capacity costs assigned to the season requiring it. Product Cost Non-holiday Holiday per case per case < Required A Required B >
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