Question

Please help ASAP!!!! Homework due at 11pm
Activity-Based Supplier Costing Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones: Component 125X and Component 30Y. Consider two activities: testing components and reordering components. After the two components are inserted, testing is done to ensure that the two components in the phones are working properly. Reordering occurs because one or both of the components have failed the test and it is necessary to replenish component inventories. Activity cost information and other data needed for supplier costing are as follows: I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Costs Testing components $1,200,000 Reordering components 300,000 II. Supplier Data Alpha Electronics La Paz Company 125X 30Y 125X 30Y Unit purchase price $26 $12 $28 $10 Units purchased 120,000 74,300 15,000 15,000

Answer 1

Answer Adpha Slatronds. (25* A Failed tests - 1000 Number of recorder Alpha Electronis = 60 Alpha Electronics Box . Falled tests - 780 La Paz Company (25) Faeted Test 10 Number of records 20.. La Paz Company (307) Fauled Tests =10

Number of record = 0 Facted 125x +300+ 125 tov. = 1900 +780+ 10+10 Total = 2600 Number of secoder 3) 125X +300+125 x + 307 ? 60 t ko. toto Total : 100 of Actinty Calculation overhead Rates Testing components Activity rate=480 . :1 20000 2600 . . = 46.15

Recordering componer's - 3000 - 300000 100 3000 calculate of unt cost Alpha Electronics La Paz Compar 1254 304 125x__304 11800X480 780XL180 480x60 480X10 1-864 ooo -374400 = 4,800 4800 Testing components 480 per failed Reconding Component Cox 3000 40x30 0 0 80000 120000 Total Activity bed 4800 : 104600 494400 4800 494400 V0000 74.300 1500 Units purchased 15000 1 = 8:7.. 6.6 3.2 Cost per unit 3.2 12 . 28 Purchase and price to 26 = 8,7610 6.6+26 boat cost T = 187 32.6 32712 32+28 15 3112