eBook Show le How Calodator Activity-Based Supplie Costing Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones: Component 125X and Component 30Y. Consider two actimties: testing components and reordering components. After the two components are inserted, testing is done to ensure that the two components in the phones are working properly. Reordering accurs because one or both of the components have failed the test and it is necessary to replenish component inventones. Acivity cost information and other data needed for supplier costing are as follows L. Activity Costs Caused by Suppliers (testing falures and reordering as a result) Activity Testing components Reordering components IL. Suppier Data Costs $1,200,000 300,000 Alpha Electronics La Paz Company Unit purchase prce Units purchased Failed tests Number of reorders Required: $10 120,000 1,200 26 60,000 780 $12 15,000 10 15,000 Previous Next