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This is all one question! Frame It Company manufactures Digital Photo frames. Frame It produces all the parts necessary for its frames , except for
This is all one question!
Frame It Company manufactures Digital Photo frames. Frame It produces all the parts necessary for its frames , except for one electronic component, which is purchased from two local suppliers: Digi International and Electro Company. Both suppliers are reliable and rarely deliver late. Digi sells the component for $12.00 per unit, while Electro sells the same component for $10.00. Frame It purchases 80% of its components from Electro because of the lower price it offers. The total annual demand is 95,000 units. 1. Activity Data Activity Cost Inspecting components (sampling only) $ 210,000 Reworking products (due to failed component) $2,454,000 Warranty work (due to failed component) $1,923,000 II. Supplier Data Digi Electro International Company. Unit purchase price $12.00 $10.00 Units purchased 19,000 76,000 Sampling hours 60 2,600 Rework hour 150 3,800 Warranty hours 550 7,000 Calculate the activity rate for reworking products based on rework hours. (Note: Round answer to the nearest dollar.) O $625 per hour O $595 per hour O $602 per hour O $621 per hour O $605 per hourStep by Step Solution
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