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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 (stridulo
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* 714,000 Supplier returns** 102,700 *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 $70 $135 $67 15,000 15,000 Unit purchase price Units purchased Insufficient units Returned units $132 35,000 3,300 1,500 900 35,000 3,300 1,500 900 475 475 Required: II. Supplier Data Stridulo Brakes Fallimento Brakes Discs Pads Discs Pads $70 $135 $67 $132 Unit purchase price Units purchased Insufficient units 15,000 15,000 35,000 35,000 900 900 3,300 3,300 Returned units 475 475 1,500 1,500 Required: 1. Calculate the activity rates for assigning costs to suppliers. Adverse buying rate $ per adverse purchase Supplier return rate 69 per return 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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