Question: please answer both questions related to question number 1 Activity-Based Supplier Costing Bowman Company manufactures cooling systems, Bowman produces all the parts necessary for its

 please answer both questions related to question number 1 Activity-Based Supplier
Costing Bowman Company manufactures cooling systems, Bowman produces all the parts necessary
please answer both questions related to question number 1

Activity-Based Supplier Costing Bowman Company manufactures cooling systems, Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and-seldom deliver late; however, Manzer sells the component for $89 per unit, while Buckner sells the same component for $86. Bowman purchases 80% of its components from Buckner because of its lower price. The total annual demand is 4,000,000 components. To help assess the cost effect of the two components, the following data were collected for supplier-related activities and suppliers: I. Activity Data - Sampiing inspection for Manter's product has been reduced because the reject rate is so low. Required: 1. Calculate the cost per component for each supplier, taking into consideration the costs of the supplier-related activities and using the current prices and sales volume. (Note: Round the intermediate calculations to the whole number for the following activity rates: "Reworking products" and "Warranty work". Round the unit cost to two decimal places.) Manzer tne4 ger unit Buckner Company x per unit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!