Activity-Based Supplier Costing LissenPhones 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 activities: testing 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 $1,500,000 375,000 Unit purchase price Units purchased Failed tests Number of reorders Required: Determine the cost of each supplier by using ABC. Round unit costs to two decimal places 125X $10 150,000 1,500 75 Alpha Electronics 30Y $26 75,000 975 50 125X $12 18,750 13 La Paz Company 30Y $28 18,750 12 Alpha Electronics La Paz Company 125X unit cost 30Y unit cost