Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stuet Quilting Company makes blankess that it markets through a variety of department stores. It makes the blankets in batches of 8,000 units. Stuart mece

image text in transcribed

Stuet Quilting Company makes blankess that it markets through a variety of department stores. It makes the blankets in batches of 8,000 units. Stuart mece 36,000 blankets during the prior accounting period. The cost of producing the blankets summarized here. Materials coat (SSS per unit 34,000) $1,168,000 Laborcost ($25 per unit 35.000) 1.044.000 Manufacturing Supplies (97% 35,000) 2:2.000 Setch-level costs betches at $5,000 per batch 35,000 Product-lerel costs 280.000 Fecility-level costs 350,000 Total costs $5.290.000 Cost per unit=59,450,00036,000 = 5875 Required 1. Sunny Mistes has offered to buy a batch of 200 blankess for $50 each. Stuart's normal selling price 95 per unit Calculate the relevant cost per unit for the special order. Based on the preceding cuantitative dete, should start sccept the special order? 2 Sunny offered to buy a batch of coo blankets for $75 per unit calculate the relean cost per unit for the special order. Should Stuart accept the special order? Stuet Quilting Company makes blankess that it markets through a variety of department stores. It makes the blankets in batches of 8,000 units. Stuart mece 36,000 blankets during the prior accounting period. The cost of producing the blankets summarized here. Materials coat (SSS per unit 34,000) $1,168,000 Laborcost ($25 per unit 35.000) 1.044.000 Manufacturing Supplies (97% 35,000) 2:2.000 Setch-level costs betches at $5,000 per batch 35,000 Product-lerel costs 280.000 Fecility-level costs 350,000 Total costs $5.290.000 Cost per unit=59,450,00036,000 = 5875 Required 1. Sunny Mistes has offered to buy a batch of 200 blankess for $50 each. Stuart's normal selling price 95 per unit Calculate the relevant cost per unit for the special order. Based on the preceding cuantitative dete, should start sccept the special order? 2 Sunny offered to buy a batch of coo blankets for $75 per unit calculate the relean cost per unit for the special order. Should Stuart accept the special order

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study Guide For Use With Managerial Accounting

Authors: Ronald M. Copeland, Paul E. Dascher, Jerry R. Strawser, Robert H. Strawser

1st Edition

0873937651, 978-0873937658

More Books

Students also viewed these Accounting questions