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Required a. Sunny Motels has offered to buy a batch of 550 blankets for $24 each Dalton's normal selling price is $45 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 1300 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.

Required a. Sunny Motels has offered to buy a batch of 550 blankets for $24 each Dalton's normal selling price is $45 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 1300 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1100 units Dalton made 21,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($10 per unit 21,000) Labor cost (59 per unit 21,000) Manufacturing supplies ($1.50 21,000) Batch-level costs (20 batches at $2,425 per batch) Product level costs Facility level costs Total costs Cost per unit $716,250 21,000 $34.11 Required $210,000 189,000 31,500 49,500 14,000 152,250 5716,250 a. Sunny Motels has offered to buy a batch of 550 blankets for $24 each Dalton's normal selling price is $45 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 1100 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. Cost per unit a Should Dalton accept the special order? b. Cost per unit b. Should Dalton accept the special order?
Transcribed Image Text:Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1100 units Dalton made 21,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($10 per unit 21,000) Labor cost (59 per unit 21,000) Manufacturing supplies ($1.50 21,000) Batch-level costs (20 batches at $2,425 per batch) Product level costs Facility level costs Total costs Cost per unit $716,250 21,000 $34.11 Required $210,000 189,000 31,500 49,500 14,000 152,250 5716,250 a. Sunny Motels has offered to buy a batch of 550 blankets for $24 each Dalton's normal selling price is $45 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 1100 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. Cost per unit a Should Dalton accept the special order? b. Cost per unit b. Should Dalton accept the special order?
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