Ventana Company is a car window repair and replacement company operating in the after-sales market....
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Ventana Company is a car window repair and replacement company operating in the after-sales market. Ventana's purchasing manager uses two suppliers (Jones Glass and Claro Glass) for the source of its passenger car windows. Data relating to side windows (Side) and windshields (WS) are given below. I. Activity costs Activity Adverse buying* Supplier returns** 562,500 68,400 * Extra cost of purchasing from local car dealer because of insufficient delivery of supplier. ** Windows returned because they were not ordered or because they were defective. II. Supplier Data Jones Glass Claro Glass Side WS Side WS $70 $135 $67 $132 Unit purchase price Units purchased Insufficient units 15,000 15,000 30,000 30,000 750 750 3,000 3,000 Returned units 425 425 1,000 1,000 Required: 1. Calculate the activity rates for assigning costs to suppliers. Adverse buying rate $ per adverse purchase Supplier return rate per return 2. Calculate the total unit purchasing cost for each component for each supplier. If required, round your answers to the nearest cent. Total unit cost Jones Glass Claro Glass Side $ $ WS $
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