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:

Reference

A mention or citation of a source of information or an instance of referring to something in speech or writing.

Newspaper

A printed publication consisting of sheets of paper containing news, articles, advertisements, and other information, regularly issued.

Corrective

Intended to rectify or improve something by eliminating faults or malfunctions.

Feedback

The process of providing constructive responses to a person's actions or performance, aimed at encouraging improvement or acknowledging success.