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Please answer in the same format as the picture. Leon information applies to the questions displayed below. Hult Games buys electronic components for manufacturing from
Please answer in the same format as the picture.
Leon information applies to the questions displayed below. Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer During the past quarter, the purchasing and delivery data for the two suppliers showed the following Milan Dundee Total Total purchases (cartons) 126,000 54,000 180,000 Average purchase price per carton) $ 22.00 $ 24 $22.60 Number of deliveries 20 Percentage of lato deliveries 101 80 100 254 220 The Accounting Department recorded $553,500 as the cost of late deliveries to customers. Exercise 10-36 (Algo) Activity-Based Costing of Suppliers (LO 10-3, 4) Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when lote deliveries are considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Effective Cost Per Carton Milan Dundee Step by Step Solution
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