Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rundle Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,000 units. Rundle made
Rundle Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,000 units. Rundle made 30,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. $ 810,000 690,000 120,000 120,000 Materials cost $27 per unit x 30,000) Labor cost ($23 per unit x 30,000) Manufacturing supplies ($4 x 30,000) Batch-level costs (30 batches at $4,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $2,350,000 = 30,000 = $78.3 290,000 320,000 $2,350,000 Required a. Sunny Motels has offered to buy a batch of 800 blankets for $58 each. Rundle's normal selling price is $95 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Rundle accept the special order? b. Sunny offered to buy a batch of 2,000 blankets for $58 per unit, calculate the relevant cost per unit for the special order. Should Rundle accept the special order? (For all requirements, round "Cost per unit" to 2 decimal places.) Cost per unit Should Rundle accept the special order? Cost per unit Should Rundle 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