Engineering, 14.02.2020 21:59 christianmcafee

Lissen Phones uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell telephones.

Component 125X and Component 30Y. Consider two activities: testing and reordering components. After the two components are inserted,

testing is done to ensure that the two components in the telephone are working properly. Reordering occurs because one or both of the components have

failed the test and it is necessary to replenish components inventories. Activity cost information and other data needed for supplier costing are as follows.

Activity costs caused by suppliers (testing failures and reordering as a result):

Activity Cost
Testing components $1,500,000
Reordering components $375,000
Supplier data:

- Alpha Electronics La Paz Company
125X 30Y 125X 30Y
Unit purchase price $10.00 $26.00 $12.00 $28.00
Units purchased 150,000 75,000 18,750 18,750
Units that failed tests 1,500 975 13 12
Number of reordes 75 50 0 0
Determine the cost of each supplier by using ABC. Round unit cost to two decimal places.

Alpha Electronics La Paz Company
Component Cost Component Cost
125X 125X
30Y 30Y
Total Cost Total Cost

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Lissen Phones uses Alpha Electronics and La Paz Company to buy two electronic components used in the...

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