I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Testing components...

Transcribed Image Text:

I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Testing components Reordering components II. Supplier Data Costs $1,200,000 300,000 Alpha Alpha La Paz La Paz Electronics Electronics Company Company 125X 30Y 125X 30Y Unit purchase price $10 $26 $12 $28 Units purchased 120,000 67,100 15,000 15,000 Failed tests 1,500 780 10 10 Number of reorders 60 40 0 0 Required: Determine the cost of each supplier by using ABC. Round Test and Reorder rates to the nearest dollar, and final answers to the nearest cent. Alpha Alpha Electronics 30Y La Paz La Paz Electronics Company Company 125X 125X 30Y Unit cost: 8.02 X 2,014.19 X I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Testing components Reordering components II. Supplier Data Costs $1,200,000 300,000 Alpha Alpha La Paz La Paz Electronics Electronics Company Company 125X 30Y 125X 30Y Unit purchase price $10 $26 $12 $28 Units purchased 120,000 67,100 15,000 15,000 Failed tests 1,500 780 10 10 Number of reorders 60 40 0 0 Required: Determine the cost of each supplier by using ABC. Round Test and Reorder rates to the nearest dollar, and final answers to the nearest cent. Alpha Alpha Electronics 30Y La Paz La Paz Electronics Company Company 125X 125X 30Y Unit cost: 8.02 X 2,014.19 X

Answer rating: 100% (QA)

To determine the cost of each supplier using ActivityBased Costing ABC we need to calculate the Test and Reorder rates for each supplier based on the ... View the full answer