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I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Costs Testing components $1,500,000 Reordering components 375,000 II. Supplier Data Alpha

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I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Costs Testing components $1,500,000 Reordering components 375,000 II. Supplier Data Alpha Electronics La Paz Company 125X 30Y 125X 30Y Unit purchase price $10 $26 $12 $28 Units purchased 150,000 80,100 18,750 18,750 Failed tests 1,000 975 13 12 Number of reorders 75 50 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: $ 16.5 $ 37 V $ 12.52 $ 28.48

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