Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Noguchi Company manufactures cooling systems. Noguchi produces all the parts necessary for its product except for one electronic component, which is purchased from two local
Noguchi Company manufactures cooling systems. Noguchi produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom deliver late; however, Manzer sells the component for $ per unit, while Buckner sells the same component for $ Noguchi purchases of its components from Buckner because of its lower price. The total annual demand is components. To help assess the cost effect of the two components, the following data were collected for supplierrelated activities and suppliers: I. Activity Data Line Item Description Activity Cost Inspecting components sampling only $ Reworking products due to failed component Warranty work due to failed component II Supplier Data Line Item Description Manzer Inc. Buckner Company Unit purchase price $ $ Units purchased Sampling hours Rework hours Warranty hours Sampling inspection for Manzer's product has been reduced because the reject rate is so low. Required: Calculate the cost per component for each supplier, taking into consideration the costs of the supplierrelated activities and using the current prices and sales volume. Note: Round the intermediate calculations to the whole number for the following activity rates: "Reworking products" and "Warranty work". Round the unit cost to two decimal places. Line Item Description Cost Manzer Inc. $fill in the blank per unit Buckner Company $fill in the blank per unit a Suppose that Noguchi loses $ in sales per year because it develops a poor reputation due to defective units attributable to failed components. Using warranty hours, assign the cost of lost sales to each supplier. Line Item Description Cost Manzer $fill in the blank Buckner $fill in the blank
Noguchi Company manufactures cooling systems. Noguchi produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom deliver late; however, Manzer sells the component for $ per unit, while Buckner sells the same component for $ Noguchi purchases of its components from Buckner because of its lower price. The total annual demand is components.
To help assess the cost effect of the two components, the following data were collected for supplierrelated activities and suppliers:
I. Activity Data
Line Item Description Activity Cost
Inspecting components sampling only $
Reworking products due to failed component
Warranty work due to failed component
II Supplier Data
Line Item Description Manzer Inc. Buckner Company
Unit purchase price $ $
Units purchased
Sampling hours
Rework hours
Warranty hours
Sampling inspection for Manzer's product has been reduced because the reject rate is so low.
Required:
Calculate the cost per component for each supplier, taking into consideration the costs of the supplierrelated activities and using the current prices and sales volume. Note: Round the intermediate calculations to the whole number for the following activity rates: "Reworking products" and "Warranty work". Round the unit cost to two decimal places.
Line Item Description Cost
Manzer Inc. $fill in the blank
per unit
Buckner Company $fill in the blank
per unit
a Suppose that Noguchi loses $ in sales per year because it develops a poor reputation due to defective units attributable to failed components. Using warranty hours, assign the cost of lost sales to each supplier.
Line Item Description Cost
Manzer $fill in the blank
Buckner $fill in the blank
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started