Activity Cost $$\begin{array} { l l }
\text { Inspecting comp onents (sampling only) } & \$ 190,000 \
\text { Reworking products (due to failed component) } & \$ 2,254,000 \
\text { Warranty work (due to failed component) } & \$ 1,723,000
\end{array}$$ II. Supplier Data $\begin{array}{lrr}&\text { Supplier } 1 &\text { Supplier } 2\
\text { Units Purchase Price } & \$ 10.00 & \$ 8.95 \
\text { Units Purchased } & 22,500 & 52,500 \
\text { Sampling Hours } & 50 & 2,450 \
\text { Rework Hours } & 135 & 3,625 \
\text { Warranty Hours } & 475 & 6,000
\end{array}$
-Refer to Tigra Company. What is the total activity cost per component associated with using Supplier 1?
A) $10.00
B) $15.75
C) $19.38
D) $20.00

Question

Activity Cost $$\begin{array} { l l } 
\text { Inspecting comp onents (sampling only) } & \$ 190,000 \
\text { Reworking products (due to failed component) } & \$ 2,254,000 \
\text { Warranty work (due to failed component) } & \$ 1,723,000
\end{array}$$ II. Supplier Data $\begin{array}{lrr}&\text { Supplier } 1 &\text { Supplier } 2\
\text { Units Purchase Price } & \$ 10.00 & \$ 8.95 \
\text { Units Purchased } & 22,500 & 52,500 \
\text { Sampling Hours } & 50 & 2,450 \
\text { Rework Hours } & 135 & 3,625 \
\text { Warranty Hours } & 475 & 6,000
\end{array}$
-Refer to Tigra Company. What is the total activity cost per component associated with using Supplier 1?
A) $10.00
B) $15.75
C) $19.38
D) $20.00

Quizplus · Accepted Answer

The total activity cost per component for Supplier 1 is calculated by dividing the total costs associated with Supplier 1 by the number of units purchased from Supplier 1. The costs include inspecting, reworking, and warranty work.

Activity Cost II Supplier Data -Refer to Tigra Company