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 per unit. 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 Inspecting components (sampling only) Reworking products (due to failed component) Warranty work (due to failed component) Activity Cost $ 210,000 $2,454,000 $1,923,000 II. Supplier Data Hydra International $12.00 19,000 Unit purchase price Units purchased Sampling hours Rework hours Warranty hours Parable Company $10.00 76,000 2,600 3,800 7,000 60 150 550 Calculate the total activity cost per component associated with using Hydra International as the supplier. (Note: Round the activity rates to the nearest dollar and the cost per component to two decimal places.) a. $10.00 b. $24.53 c. $15.75 d. $22.80 e. $20.00