Question
Ventana Company is a car window repair and replacement company operating in the after-sales market. Ventanas purchasing manager uses two suppliers (Jones Glass and Claro
Ventana Company is a car window repair and replacement company operating in the after-sales market. Ventanas purchasing manager uses two suppliers (Jones Glass and Claro Glass) for the source of its passenger car windows. Data relating to side windows (Side) and windshields (WS) are given below. I. Activity costs Activity Adverse buying* 688,500 Supplier returns** 59,000 * Extra cost of purchasing from local car dealer because of insufficient delivery of supplier. ** Windows returned because they were not ordered or because they were defective. II. Supplier Data Jones Glass Claro Glass Side WS Side WS Unit purchase price $60 $135 $57 $132 Units purchased 15,000 15,000 30,000 30,000 Insufficient units 750 750 3,300 3,300 Returned units 475 475 1,000 1,000 Required: 1. Calculate the activity rates for assigning costs to suppliers. Adverse buying rate $ per adverse purchase Supplier return rate $ per return 2. Calculate the total unit purchasing cost for each component for each supplier. If required, round your answers to the nearest cent. Total unit cost Jones Glass Claro Glass Side $ $ WS $ $
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