Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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** 562,500 74,100 * 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 Claro Glass Sidews Unit purchase price Units purchased Insufficient units Returned units Jones Glass Sidews $80 $135 15,000 15,000 750 750 425 425 $77 35,000 3,000 1,000 $132 35,000 3,000 1,000 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 Claro Glass Jones Glass $ $ Side WS A
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started