(Solution) - Webb Computers uses Alpha Electronics and La Paz Company to -(2025 Original AI-Free Solution)

Paper Details

Webb Computers 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, testing is done to ensure that the two components in the computer 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 .....600,000
Reordering components .....150,000
II. Supplier Data