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I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Costs Testing components $1,200,000 Reordering components 300,000 II. Supplier Data Alpha
I. Activity Costs Caused by Suppliers (testing failures and reordering as a result)
| Activity | Costs |
| Testing components | $1,200,000 |
| Reordering components | 300,000 |
II. Supplier Data
| Alpha Electronics | La Paz Company | ||||||||||||
| 125X | 30Y | 125X | 30Y | ||||||||||
| Unit purchase price | $10 | $26 | $12 | $28 | |||||||||
| Units purchased | 120,000 | 77,800 | 15,000 | 15,000 | |||||||||
| Failed tests | 1,900 | 780 | 10 | 10 | |||||||||
| Number of reorders | 60 | 40 | 0 | 0 | |||||||||
Required:
Determine the cost of each supplier by using ABC. Round Test and Reorder rates to the nearest dollar, and final answers to the nearest cent.
| Alpha Electronics | La Paz Company | ||||
| 125X | 30Y | 125X | 30Y | ||
| Unit cost: | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 | |
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