Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,320 units. Dalton made 23,200 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($10 per unit x 23,200) Labor cost ($9 per unit x 23,200) Manufacturing supplies ($1.50 x 23,200) Batch-level costs (20 batches at $3,696 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $810,520 + 23,200 = $34.94 Required $ 232,000 208,800 34,800 73,920 92,800 168,200 $ 810,520 a. Sunny Motels has offered to buy a batch of 660 blankets for $25 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 1,320 blankets for $25 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?
Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,320 units. Dalton made 23,200 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($10 per unit x 23,200) Labor cost ($9 per unit x 23,200) Manufacturing supplies ($1.50 x 23,200) Batch-level costs (20 batches at $3,696 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $810,520 + 23,200 = $34.94 Required $ 232,000 208,800 34,800 73,920 92,800 168,200 $ 810,520 a. Sunny Motels has offered to buy a batch of 660 blankets for $25 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 1,320 blankets for $25 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of
1,320 units. Dalton made 23,200 blankets during the prior accounting period. The cost of producing the blankets is summarized here.
Materials cost ($10 per unit x 23,200)
Labor cost ($9 per unit x 23,200)
Manufacturing supplies ($1.50 x 23,200)
Batch-level costs (20 batches at $3,696 per batch)
Product-level costs
Facility-level costs
Total costs
Cost per unit = $810,520 + 23,200 = $34.94
Required
$ 232,000
208,800
34,800
73,920
92,800
168,200
$ 810,520
a. Sunny Motels has offered to buy a batch of 660 blankets for $25 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 1,320 blankets for $25 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?
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