1. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Costs Testing parts $4,500,000 Reordering parts 1,125,000 II. Supplier Data Otavalo Manufacturing Piura Company Part #625 Part #827 Part #625 Part #827 Unit purchase price $30 $78 $36 $84 Units purchased 450,000 225,000 56,250 56,250 Failed tests 4,500 2,925 39 36 Number of reorders 225 150 0 0 Required: Determine the cost of each supplier by using ABC. Round unit costs to two decimal places. Otavalo Manufacturing Piura Company Part=625 Part =827