ABC cost method help

b. German Shepard) - German Shepherd... Cke German Sheper. Other eBook Show Me How Calculator Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones: Component 125X and Component JOY. Consider two activities: testing components and reordering components. Alter the two components are inserted, testing is done to ensure that the two components in the phones are working properly. Reordering occurs because one or both of the components have failed the test and it is necessary to replenish component inventories. Activity cost information and other data needed for supplier costing are as follows: I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Testing components Reordering components Costs $1,200,000 300,000 II. Supplier Data Unit purchase price Alpha Electronics 125x 30Y $10 $26 120,000 75,600 1,300 780 6040 La Paz Company 125X 30Y $12 S2 15,000 15,000 10 10 Units purchased Failed tests Number of reorders 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 La Paz Company Alpha Electronics 125X 30Y 125X 30Y Previous Next Check My Work 2 more Check My Work uses remaning Save and Exit Submit Assignment for Grading All work saved U U U M OIS 3 Miami University Uve Streaming - German Shepard German Shepherd German S 00 erbo eBook h Show Me How 125X Unit purchase price Calculator 30Y 125X $26 $12 75,600 15,000 780 10 40 0 $ 10 120,000 1,300 60 Units purchased Failed tests Number of reorders 304 $28 15,000 10 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 Electronics 125X 30Y La Paz Company 125X 30Y Unit cost: Feedback Check My Work The unit cost includes the unit purchase price and any activity costs caused by suppliers The first step is to determine the rates for activities caused by suppliers by dividing the activity costs by the total number of activity drivers Next, ply those activity to the activity drivers to determine the additional cost caused by suppliers and add those costs to purchase costs to determine the total cost per product. Ther e are cost by the number of units to determine unit cost by product. Previous Next > mit Assigment for Grading Save and Est S Check My Work 2 more Check My Work uses remaining All work saved