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Activity Cost II Supplier Data -Refer to Tigra Company

Question 70

Multiple Choice

Activity Cost  Inspecting comp onents (sampling only)  $190,000 Reworking products (due to failed component)  $2,254,000 Warranty work (due to failed component)  $1,723,000\begin{array} { l l } \text { Inspecting comp onents (sampling only) } & \$ 190,000 \\\text { Reworking products (due to failed component) } & \$ 2,254,000 \\\text { Warranty work (due to failed component) } & \$ 1,723,000\end{array} II. Supplier Data  Supplier 1 Supplier 2 Units Purchase Price $10.00$8.95 Units Purchased 22,50052,500 Sampling Hours 502,450 Rework Hours 1353,625 Warranty Hours 4756,000\begin{array}{lrr}&\text { Supplier } 1 &\text { Supplier } 2\\\text { Units Purchase Price } & \$ 10.00 & \$ 8.95 \\\text { Units Purchased } & 22,500 & 52,500 \\\text { Sampling Hours } & 50 & 2,450 \\\text { Rework Hours } & 135 & 3,625 \\\text { Warranty Hours } & 475 & 6,000\end{array}
-Refer to Tigra Company. What is the activity rate for reworking products on the basis of rework hours?


A) $595 per hour
B) $599 per hour
C) $602 per hour
D) $605 per hour

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