Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

s Question Completion Status: Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronac component, nhuch is purchased

image text in transcribed

s Question Completion Status: Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronac component, nhuch is purchased from two local suppliers: Hydra International and Parable Company Both suppliers are reliable and rarely deliver late Hydra sells the component for $12.00 per unit, while Parable sells the same component for S 10.00 per unit. Fame purchases S0% ofts comp rents firom Parable because of the lower price it offers The total anoual demand is 95,000 units I Activity Data Inspecting components (sanmpling cnly) Rewerking products (due to failed component) Warranty work (due to faled component) Actiuuty Cost 210,000 $2.454,000 $1 923.000 Il Supplier Daa Unit purchase price Uaits purchased Sampling hours Rework hours Warrasty hours ByiaRaxabls IntematicnalCompany $10.00 19,00076,000 60 2,600 3,500 7,000 $1200 550 Calcuiate the total activity cost per composent associated with using Hydra Internatioeal as the supplies (Note Round tbe activity rates to the nearest dellar and the cost per component to twe decimal places) Note a 524.53 b S20.00 E522.80 o ".110.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions