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 307. 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: 1. Activity Costs Caused by Suppliers (testing fallures and reordering as a result) Activity Costs Testing components $1,200,000 Reordering components 300,000 II. Supplier Data Alpha Electronics La Paz Company 125x JOY 125x JOY