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 tate; 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 anual demand is 4,000,000 components To help assess the cost effect of the two components, the following data were collected for suppler-related activities and suppliers: I. Activity Data Activity Cost Inspecting components (sampling only) $815,000 Reworking products (due to faled component) 6,070,000 Warranty work (due to failed component) 11,770,000 11. Supplier Data Buckner Manzer Inc. Company Unit purchase price $89 586 Units purchased 800,000 3,200,000 Sampling hours 80 3,920 Rework hours 360 5,640 Warranty hours 800 15,200 Sampling section for Hanter's product has been reduced because the rejectates low Check My Workmore Check My Work uses remaining