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Lissen Computers uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its computers: Component 125 X and
Lissen Computers uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its computers: Component 125 X and Component 30 Y. Consider two activities: testing and reordering components. After the two components are inserted, testing is done to ensure that the two components in the computer are working properly. Reordering occurs because one or both of the components have failed the test and it is necessary to replenish component inventories. Activity cost information and other data needed for supplier costing are as follows: Activity Costs Caused by Suppliers (testing failures and reordering as a result) 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
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