Mobile Repair Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $125,000 for purchasing support should be assigned to the individual vendors from the information given as follows:

	Vendor A	Vendor B	Vendor C
Units purchased	100,000	200,000	200,000
Purchase orders (annually)	6	24	100
Number of shipments received	12	52	25

Required:

a. Allocate the purchasing costs to the three vendors, assuming Mobile Repair uses units purchased to compute activity-based costs.

b. Allocate the purchasing costs to the three vendors, assuming Mobile Repair uses purchase orders to compute activity-based costs.

c. Allocate the purchasing costs to the three vendors, assuming Mobile Repair uses number of shipments to compute activity-based costs.