Activity Cost II Supplier Data -Refer to Tigra Company

question 42

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 warranty work on the basis of warranty hours?

• A) $262 per hour
• B) $264 per hour
• C) $266 per hour
• D) $268 per hour

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Definitions:

Sleep Deprivation

A condition resulting from not getting enough sleep, which can affect cognitive performance, mood, and overall health.

Problem-Solving Skills

The ability to find solutions to difficult or complex issues.

Experiment

A research method in which an investigator manipulates one or more factors (independent variables) to observe the effect on some behavior or mental process (the dependent variable). By random assignment of participants, the experimenter aims to control other relevant factors.

Experimentation

The process of conducting tests and trials to explore hypotheses, gather data, or demonstrate principles in controlled conditions.