Activity Cost II Supplier Data -Refer to Tigra Company

question 58

Multiple Choice

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 activity rate for reworking products on the basis of rework hours?

• A) $595 per hour
• B) $599 per hour
• C) $602 per hour
• D) $605 per hour

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Definitions:

R

Symbol commonly used to denote resistance in electrical circuits, measured in ohms (Ω).

Power Factor

The ratio of the real power flowing to the load to the apparent power in the circuit, indicating how effectively electrical power is converted into useful work output.

RC Parallel Circuit

An electrical circuit composed of resistors (R) and capacitors (C) connected in parallel, affecting the total impedance seen by an alternating current (AC) source.

R

A symbol commonly used to represent resistance in electrical circuits, measured in ohms (Ω).