Brief Exercise 5-34. Activity-Based Supplier Costing Objective 3 Example 5.6 Blackburn Inc. uses Otavalo Manufacturing and Piura Company to buy two precision-machined parts used in the manufacture of its permanent-magnet motors: Part #625 and Part #827. Consider two activities: testing parts and reordering parts. After the two parts are inserted, testing is done to ensure that the two parts work as intended. Reordering occurs because one or both of the parts have failed the test and it is necessary to replenish part inventories. Activity cost information and other data needed for supplier costing are as follows: