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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: Component

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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: Component 125X and Component 30Y. Consider two activitles: 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 inventories. Activity cost information and other data needed for supplier costing are as follows: I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Testing components Reordering components II. Supplier Data Costs $1,200,000 300,000 125X $10 120,000 1,200 60 Alpha Electronics 30Y $26 72,800 780 40 La Paz Company 30Y $28 15,000 10 0 125X Unit purchase price Units purchased Failed tests Number of reorders $12 15,000 10 0 Required: Determine the cost of each supplier by using ABC. Round Test and Reorder rates to the nearest dollar, and final answers to the nearest cent. Alpha Electronics La Paz Company 125X 30Y 125X 30Y Unit cost

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