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ID: 2512850 • Letter: O

Question

owi.com/lm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take; Amber Produdts Company manufactures a product sold to retailers. It is considering suppliers for its process. The supplier quality involves four activity areas $150 per purchase order 140 per unit internal failure ot 4 per delivery mile 52 per order Order cost Defective units Delivery trips Camying cos The follawing supplier infomacion is given Materals unita needed Actuail purchase price Number of punchane orders Number of defect Number of d 60.0006000000 20 25 15 15 whan ia the cose of 325.63 S241.500 $413.000 6 3756 22

Explanation / Answer

Answer

Activity drivers

Activity Rate

Cost

No. of purchase order

10

$150

$1500

No. of defects

0

$160

$0

No. of deliveries

15

$4

$60

No. of orders

10

$2

$20

Actual purchase price

$240000

Total

$241,580

Activity drivers

Activity Rate

Cost

No. of purchase order

10

$150

$1500

No. of defects

0

$160

$0

No. of deliveries

15

$4

$60

No. of orders

10

$2

$20

Actual purchase price

$240000

Total

$241,580