Cathy and Tom's Specialty Ice Cream Company operates a smallproduction facility for the local community. The facility has thecapacity to make 25,400 gallons of the single flavor, GUI Chewy,annually. The plant has only two customers, Chuck's Gas & Goand Marcee's Drive & Chew DriveThru. Annual orders for Chuck'stotal 12,700 gallons and annual orders for Marcee's total 6,350gallons. Variable manufacturing costs are $0.90 per gallon, andannual fixed manufacturing costs are $32,600.

The icecream business has two seasons, summer and winter. Each seasonlasts exactly six months. Chuck's orders 6,350 gallons in thesummer and 6,350 gallons in the winter. Marcee's is closed in thewinter and orders all 6,350 gallons in thesummer.Cathyand Tom's Specialty Ice Cream Company operates a small productionfacility for the local community. The facility has the capacity tomake 25,400 gallons of the single flavor, GUI Chewy, annually. Theplant has only two customers, Chuck's Gas & Go and Marcee'sDrive & Chew DriveThru. Annual orders for Chuck's total 12,700gallons and annual orders for Marcee's total 6,350 gallons.Variable manufacturing costs are $0.90 per gallon, and annual fixedmanufacturing costs are $32,600.

a.Calculatethe product cost for each season with excess capacity costsassigned to season in which it is incurred.

Winter	$3.47	per gallon
Summer	$2.18	per gallon

b.Calculatethe product cost for each season with excess capacity costsassigned to the season requiring it.

Winter	????	per gallon
Summer	????	per gallon