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I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Costs Activity Testing components Reordering components $1,200,000 300,000 II. Supplier Data Alpha
I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Costs Activity Testing components Reordering components $1,200,000 300,000 II. Supplier Data Alpha Electronics La Paz Company 125X 30Y 125x 30Y Unit purchase price $10 $26 $12 $28 Units purchased 120,000 72,800 15,000 15,000 Failed tests 1,300 780 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
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