Amber Products Company manufactures a product sold to retailers. It is considering suppliers for its process. The supplier quality involves four activity areas: $\begin{array}{ll}
\text { Activity Area } & \text { Cost Driver and Rate } \
\text { Order cost } & \$ 150 \text { per purchase order } \
\text { Defective units } & \$ 160 \text { per unit internal failure costs } \
\text { Delivery trips } & \$ 4 \text { per delivery mile } \
\text { Carrying cost } & \$ 2 \text { per order }
\end{array}$
The following supplier information is given:
$\begin{array}{lrr}&X1&Y2&Z3\
\text { Materials units needed } & 60,000 & 60,000& 60,000 \
\text { Actual purchase price } & \$ 6.00 & \$ 5.00 &\$4.00\
\text { Number of purchase orders } & 25 & 20 &10\
\text { Number of defects } & 7 & 15 &0\
\text { Number of deliveries } & 25 & 35&15
\end{array}$
What is the cost of supplier Z1?

Question

Quizplus · Accepted Answer

The Answer of Amber Products Company manufactures a product sold to retailers. It is considering suppliers for its process. The supplier quality involves four activity areas: $\begin{array}{ll}
\text { Activity Area } & \text { Cost Driver and Rate } \
\text { Order cost } & \$ 150 \text { per purchase order } \
\text { Defective units } & \$ 160 \text { per unit internal failure costs } \
\text { Delivery trips } & \$ 4 \text { per delivery mile } \
\text { Carrying cost } & \$ 2 \text { per order }
\end{array}$
The following supplier information is given:
$\begin{array}{lrr}&X1&Y2&Z3\
\text { Materials units needed } & 60,000 & 60,000& 60,000 \
\text { Actual purchase price } & \$ 6.00 & \$ 5.00 &\$4.00\
\text { Number of purchase orders } & 25 & 20 &10\
\text { Number of defects } & 7 & 15 &0\
\text { Number of deliveries } & 25 & 35&15
\end{array}$
What is the cost of supplier Z1?

Amber Products Company Manufactures a Product Sold to Retailers The Following Supplier Information Is Given