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Activity-Based Supplier Costing LissenComputers uses Alpha Electronics and La Paz Company to buy two electronic...

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Accounting

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Activity-Based Supplier Costing LissenComputers uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its computers Component 125x and Component 30Y. Consider two activities: testing and reordering components. After the two components are inserted, 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 supplier costing are as follows: needed for 1. Activity Costs Caused by Suppliers (testing falilures and reordering as a resuit) Activity Testing components Reordering components $1,500,000 75,000 IL. Supplier Data La Paz Company 125x $12 Alpha Electronics $28 Unit purchase price Units purchased Failed tests Number of reorders $10 150,000 1,300 75 $26 75,400 975 18,750 18,750

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