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Activity-Based Supplier Costing Ventana Company is a car window repair and replacement company operating in the after-sales market. Ventana's purchasing manager uses two suppliers (Jones
Activity-Based Supplier Costing Ventana Company is a car window repair and replacement company operating in the after-sales market. Ventana's purchasing manager uses two suppliers (Jones Glass and Claro Glass) for the source of its passenger car windows. Data relating to side windows (Side) and windshields (WS) are given below. I. Activity costs Activity Adverse buying* Supplier returns** 637,500 82,500 * Extra cost of purchasing from local car dealer because of insufficient delivery of supplier. ** Windows returned because they were not ordered or because they were defective. II. Supplier Data Unit purchase price Units purchased Insufficient units Returned units Jones Glass Side ws $60 $145 15,000 15,000 750 750 375 375 Claro Glass Side ws $57 $142 30,000 30,000 3,000 3,000 1,500 1,500 Required: 1. Calculate the activity rates for assigning costs to suppliers. Adverse buying rate $ per adverse purchase Supplier return rate $ 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 Jones Glass Claro Glass Side WS
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