{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T05:13:54-04:00", "answer_date": "2024-05-27 05:13:54", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1780039", "url": "\/study-help\/questions\/seabrook-company-manufactures-cooling-systems-seabrook-produces-all-the-parts-1780039", "question_creation_date_js": "2024-05-27T05:13:54-04:00", "question_creation_date": "May 27, 2024 05:13 AM", "meta_title": "[Solved] Seabrook Company manufactures cooling sys | SolutionInn", "meta_description": "Answer of - Seabrook Company manufactures cooling systems. Seabrook produces all the parts necessary for its product except for on | SolutionInn", "meta_keywords": "seabrook,company,manufactures,cooling,systems,produces,parts,necessary,product,one,electronic,component", "question_title_h1": " Seabrook Company manufactures cooling systems. Seabrook produces all the parts necessary for its product except for one electronic component, which is purchased from two", "question_title": " Seabrook Company manufactures cooling systems. Seabrook produces all the parts necessary", "question_title_for_js_snippet": "Seabrook Company manufactures cooling systems Seabrook produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers Wood Inc and Forest Company Both suppliers are reliable and seldom deliver late however, Wood sells the component for $89 per unit, whereas Forest sells the same component for $86 Seabrook purchases 80 of its components from Forest because of its lower price The total annual demand is 4,000,000 components To help assess the cost effect of the two components, the following data were collected for supplier related activities and suppliers I Activity Data Inspecting components (sampling only) Reworking products (due to failed component) Warranty work (due to failed component) II Supplier Data Unit purchase price Units purchased Sample hours Rework hours Warranty hours Activity Cost $645,000 7,820,000 11,570,000 Wood Inc Forest Company $89 $86 800,000 3,200,000 80 3,920 360 5,640 800 15,200 Sampling inspections for Wood's product has been reduced because the reject rate is so low Required 1 Calculate the cost per component for each supplier, taking into consideration the costs of the supplier related activities and using the current prices and sales volume (Note In your calculations, round any unit cost to two decimal places and use rounded amounts in subsequent computations Round your final answers to two decimal places ) Wood Inc Forest Company 91 65 X per unit per unit 2a Suppose that Seabrook loses $4,700,000 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 Round any per unit rate to two decimal places in your computations Round your final answers to the nearest dollar Wood Forest $ 2b By how much would this change the cost of each supplier's component Round your answers to the nearest cent Wood Forest $", "question_description": "\"image", "transcribed_text": "Seabrook Company manufactures cooling systems. Seabrook produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Wood Inc. and Forest Company. Both suppliers are reliable and seldom deliver late; however, Wood sells the component for $89 per unit, whereas Forest sells the same component for $86. Seabrook purchases 80% of its components from Forest because of its lower price. The total annual demand is 4,000,000 components. To help assess the cost effect of the two components, the following data were collected for supplier-related activities and suppliers: I. Activity Data Inspecting components (sampling only) Reworking products (due to failed component) Warranty work (due to failed component) II. Supplier Data Unit purchase price Units purchased Sample hours* Rework hours Warranty hours Activity Cost $645,000 7,820,000 11,570,000 Wood Inc. Forest Company $89 $86 800,000 3,200,000 80 3,920 360 5,640 800 15,200 *Sampling inspections for Wood's product has been reduced because the reject rate is so low. Required: 1. Calculate the cost per component for each supplier, taking into consideration the costs of the supplier-related activities and using the current prices and sales volume. (Note: In your calculations, round any unit cost to two decimal places and use rounded amounts in subsequent computations. Round your final answers to two decimal places.) Wood Inc. Forest Company 91.65 X per unit per unit 2a. Suppose that Seabrook loses $4,700,000 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. Round any per unit rate to two decimal places in your computations. Round your final answers to the nearest dollar. Wood Forest $ 2b. By how much would this change the cost of each supplier's component? Round your answers to the nearest cent. Wood Forest $", "related_book": { "title": "Financial Accounting An Integrated Statements Approach", "isbn": "324312113, 978-0324312119", "edition": "2nd Edition", "authors": "Jonathan E. Duchac, James M. Reeve, Carl S. Warren", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/126.jpg", "uri": "\/textbooks\/financial-accounting-an-integrated-statements-approach-2nd-edition-126", "see_more_uri": "" }, "free_related_book": { "isbn": "0198811713", "uri": "\/textbooks\/viruses-1st-edition-9780198811718-152071", "name": "Viruses", "edition": "1st Edition" }, "question_posted": "2024-05-27 05:13:54", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/rafael-espinals-leadership-approach-is-best-categorized-as-what-type-656406", "description": "Rafael Espinal's leadership approach is best categorized as what type of leadership? spiritual adaptive authentic servant", "stars": 3 }, { "url": "\/do-us-gaap-and-ifrs-differ-in-the-amount-of", "description": "Do U.S. GAAP and IFRS differ in the amount of flexibility that companies have in electing the fair value option? 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Seabrook produces all the parts necessary", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/seabrook-company-manufactures-cooling-systems-seabrook-produces-all-the-parts-1780039" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } }