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Calculator Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local

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Calculator Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late. Hydra sells the component for $12.00 per unit, while Parable sells the same component for $10.00. Fame purchases 80 % of its components from Parable because of the lower price it offers. The total annual demand is 95,000 units. I. Activity Data Activity Cost $210,000 Inspecting components (sampling only) Reworking products (due to failed component) $2,454,000 Warranty work (due to failed component) $1,923,000 II. Supplier Data Hydra Parable Company International Unit purchase price $12.00 $10.00 Units purchased 19,000 76,000 Sampling hours 60 2,600 Rework hours 3,800 Warranty hours 550 7,000 Calculate the activity rate for inspecting components based on sampling hours. (Note: Round answer to the nearest dollar.) a. $75 per hour b. $72 per hour C. $79 per hour d. $80 per hour Nast 322 PM 11/3/20 Sampling hours 60 2,600 Rework hours 150 3,800 Warranty hours 550 7,000 Calculate the activity rate for inspecting components based on sampling hours. (Note: Round answer to the nearest dollar.) a. $75 per hour Ob. $72 per hour C. $79 per hour d. $80 per hour e. $77 per hour hp

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