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chapter 10 question 5 cost accounting need answered asap fill out the chart plesse Problem 10-71 (Algo) Activity-Based Costing of Suppliers ( LO 10-3, 4)
chapter 10 question 5 cost accounting need answered asap
Problem 10-71 (Algo) Activity-Based Costing of Suppliers ( LO 10-3, 4) Carrie Construction (CC) is a company specializing in bullding airport runways and major highways. As a part of its business, it receives supplies of aggregate (stone, sand, gravel, and so on) from two suppliers: Austin Aggregate and Granger Materials. The CC purchasing department has a preference for buying from Granger based on price but occasionally has to order from Austin when Granger cannot fill the ordet, Carrie Construction has recently had problems with the quality and the timeliness of deliveries. When a supplier delivers a load to CC. it goes through an initial inspection to assure it meets specification. If the load fails the initial inspection, it goes through a secondary inspection to determine the exact issue. Almost always, the issue can be resolved and the load can be used. The initiat inspection costs $3,240 per load. A secondary inspection, which is more thorough, costs $16,200 per load. If a delvery is deloyed, Carrie has to hire temporary workers or pay overtime to some employees. The average cost of a deloyed load is $6,480. The following are summary statistics from last years purchases from the two suppliers: Calculate the effective cost of a ton of aggregate from the two suppliers assuming that last year's experience is representative. Note: Round "Average effective cost per ton" answers to 2 decimal places fill out the chart plesse
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