Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,140 units. Dalton made
Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,140 units. Dalton made 21,400 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($10 per unit x 21, 400) $ 214, 000 Labor cost ($9 per unit x 21,400) 192, 600 Manufacturing supplies ($1.50 x 21, 400) 32, 100 Batch-level costs (20 batches at $2, 679 per batch) 53 , 580 Product-level costs 85, 600 Facility-level costs 155, 150 Total costs $ 733, 030 Cost per unit = $733, 030 - 21, 400 = $34. 25 Required a. Sunny Motels has offered to buy a batch of 570 blankets for $24 each. Dalton's normal selling price is $46 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Dalton accept the special order? b. Sunny offered to buy a batch of 1,140 blankets for $24 per unit. Calculate the relevant cost per unit for the special order. Should Dalton accept the special order? Note: For all requirements, round "Cost per unit" to 2 decimal places. a. Cost per unit a. Should Dalton accept the special order? b. Cost per unitMaterials cost ($10 per unit x 21,400) $ 214, 000 Labor cost ($9 per unit x 21, 400) 192, 600 Manufacturing supplies ($1.50 x 21, 400) 32, 100 Batch-level costs (20 batches at $2, 679 per batch) 53, 580 Product-level costs 85, 600 Facility-level costs 155, 150 Total costs $ 733, 030 Cost per unit = $733, 030 - 21, 400 = $34. 25 Required a. Sunny Motels has offered to buy a batch of 570 blankets for $24 each. Dalton's normal selling price is $46 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Dalton accept the special order? b. Sunny offered to buy a batch of 1,140 blankets for $24 per unit. Calculate the relevant cost per unit for the special order. Should Dalton accept the special order? Note: For all requirements, round "Cost per unit" to 2 decimal places. a. Cost per unit a. Should Dalton accept the special order? b. Cost per unit b. Should Dalton accept the special order
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started