Activity$-$Based Supplier Costing

To help assess the cost effect of the two components, the following data were collected for supplier$-$related activities and suppliers:

I. Activity Data

Activity Cost

Inspecting components $($sampling only$)$

Reworking products $($due to failed component$)$

Warranty work $($due to failed component$)$

II$.$ Supplier Data

Sampling inspection for Manzer's product has been reduced because the reject rate is so low.

Required:

"Reworking products" and "Warranty work". Round the unit cost to two decimal places.$)$

Manzer Inc

$x$ per unit

Buckner Company

$$ per unit

Activity$-$Based Customer$-$Driven Costs

Suppose that Stillwater Designs has two classes of distributors: JIT distributors and nonJIT distributors. The JIT distributor places small, frequent orders, and the non$-$JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer$-$related activities and costs for the most recent quarter:

$\backslash$table$[[,\backslash$table$[[$JIT$],[$Distributors$]]],[$Sales orders,$1,200],[$Sales calls,$70],[$Service calls,$350],[$Average order size,$750],[$Manufacturing cost$/$unit$,$$$125$