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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 22Explanation / 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
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