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The following data are for the source of two electronic components, A2B and B2C, used by a purchasing manager: Activity Costs: Activity Component Failure/ Late
The following data are for the source of two electronic components, A2B and B2C, used by a purchasing manager: Activity Costs: Activity Component Failure/ Late Delivery Reworking products $250,000 Expediting products 50,000 Supplier Data: A2B B2C Failed units 600 400 Late shipments 15 10 Component failure and late delivery are attributable to suppliers; process failure is caused by internal processes. Calculate the activity rates for assigning costs to suppliers
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