A1)

Wiley Manufacturing has two classes of distributors: JIT distributors and nonJIT distributors. The JIT distributor places small, frequent orders, and the nonJIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customerrelated activities and costs for the previous quarter are as follows: Activity JIT Distributors Non-JIT Distributors Sales orders 500 30 Sales calls 30 30 Service calls 200 90 Average order size 90 1,400 Manufacturing cost/unit $50 $50 Customer costs: Processing sales orders $160,000 Selling goods 155,000 Servicing goods 195,000 Calculate the total customer cost for the non-JIT distributors. (Round activity rates and activity costs to the nearest dollar.) Oa. $150,025 Ob. $175,200 Oc. $147,030 00. $122,500 Raceway Company manufactures engines. Raceway produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late. Hydra sells the component for $12 per unit, while Parable sells the same component for $10 per unit. Raceway purchases 80% of its components from Parable because of the lower price it offers. The total annual demand is 95,000 units. 1. Activity Data Activity Inspecting components (sampling only) $ 210,000 Reworking products (due to failed component) 2,454,000 Warranty work (due to failed component) 1,923,000 II. Supplier Data mm Parable International Co_mpa_ny Unit purchase price $12 $10 Units purchased 19,000 76,000 Sampling hours 60 2,600 Rework hours 150 3,800 Warranty hours 550 7,000 What is the total purchasing cost per unit associated with using Hydra International as the supplier? (Round activity rates to the nearest dollar and cost per unit to two decimal places.) Ca. $10.00 On. $15.75 Oc. $20.00 Od. $24.53 Brookfield Manufacturing uses a process-costing system and computes cost using the weighted average method. The beginning work-in-process inventory cost was $17,525. The manufacturing cost added during the period was $63,000. If Brookfield's ending work-in-process inventory was valued at $20,100, then the cost of goods transferred must have been: Oa. $84,625. Ob. $55,425. Oc. $58, 575. Od. $60,425