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Activity-Based Supplier Costing Tulsa Company is a car brake repair and replacement company operating in the after-sales market. Tulsa's purchasing manager uses two suppliers
Activity-Based Supplier Costing Tulsa Company is a car brake repair and replacement company operating in the after-sales market. Tulsa's purchasing manager uses two suppliers (Stridulo and Fallimento) for the source of its passenger car brakes. Data relating to brake discs (Discs) and brake pads (Pads) are given below. I. Activity costs Activity Adverse buying* Supplier returns*** 663,000 66,000 *Extra cost of purchasing from local car dealer because of insufficient delivery of supplier. **Brakes returned because they were not ordered or because they were defective. II. Supplier Data Stridulo Brakes Fallimento Brakes Discs Pads Discs Pads Unit purchase price $60 $135 Units purchased 15,000 15,000 $57 30,000 $132 30,000 Insufficient units 900 900 3,000 3,000 Returned units 375 375 1,000 1,000 Required: 1. Calculate the activity rates for assigning costs to suppliers. Adverse buying rate $ per adverse purchase per return Supplier return rate 2. Calculate the total unit purchasing cost for each component for each supplier. If required, round your answers to the nearest cent. Total unit cost Stridulo Brakes Fallimento Brakes Discs $ Pads
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