Activity-Based Supplier Costing

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 30Y. Consider two activities: testing components and reordering components. After 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 an

d other data needed for supplier costing are as follows:

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

Activity	Costs
Testing Components	$1,200,000
Reordering Components	300,000

II. Supplier Data

	Alpha Electronics 125x	Alpha Electronics 30Y	La Paz Company 125X	La Paz Company 30Y
Unit purchase price	$10	$26	$12	$28
Units purchased	120,000	67,700	15,000	15,000
Failed tests	1,900	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 Electronics 125X	Alpha Electronics 30Y	La Paz Company 125X	La Paz Company 30Y
Unit Cost:	$	$	$	$

Please help me find the UNIT COST for the REQUIRED part!!!!!