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 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 Costs Testing components Reordering components II. Supplier Data $1,200,000 300,000 Alpha Electronics La Paz Company 125x 30Y 125x 30Y Unit purchase price 510 $26 $12 $28 Units purchased 120,000 71,800 15,000 15,000 Failed tests 1,900 780 10 10 Number of reorders 60 40 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 125x La Paz Company 30Y 125x 30Y Unit cost: