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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:
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 30. 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 inventoret Activity cost information and other data needed for supplier costing are as follows I Activity Costs Caused by Supplier (testing failures and reordering as a result) Activity Costs Testing components $1,200,000 Reordering components 300,000 II. Supplier Data Alpha Electronics La Paz Company 125% 30Y 125% SOY Unit purchase price 510 $12 528 Units purchased 120,000 78,100 15,000 15,000 Fabed tests 2,000 780 10 10 Number of reorders 40 0 0 k Requiredt Determine the cost of each supplier by using ABC. Round Test and Reorder rates to the nearest dollar, and final answers to te nearest cent Alpha Electronics La Paz Company 125X 30Y 125x JOY Unit cost
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