Scribd Logo
Upload

Welcome to Scribd!

  • 10 views

    Murkoff Industries

    Uploaded by

    Nicolyn Rae Escalante
    The document outlines supplier related costs from two suppliers, FastTrack Engines and Exon Corporation. FastTrack had higher costs from inspection, rework, and warranty work, resulting in a total supplier related cost of $12.8 million and cost per unit of $32.04. Exon had lower costs across all categories, with a total of $2.6 million and cost per unit of $7.53.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Murkoff Industries

    Uploaded by

    Nicolyn Rae Escalante
    10 views1 page
    The document outlines supplier related costs from two suppliers, FastTrack Engines and Exon Corporation. FastTrack had higher costs from inspection, rework, and warranty work, resulting in a total supplier related cost of $12.8 million and cost per unit of $32.04. Exon had lower costs across all categories, with a total of $2.6 million and cost per unit of $7.53.

    Original Description:

    Managerial accounting problem

    Original Title

    3MA

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document outlines supplier related costs from two suppliers, FastTrack Engines and Exon Corporation. FastTrack had higher costs from inspection, rework, and warranty work, resulting in a total supplier related cost of $12.8 million and cost per unit of $32.04. Exon had lower costs across all categories, with a total of $2.6 million and cost per unit of $7.53.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    10 views1 page

    Murkoff Industries

    Uploaded by

    Nicolyn Rae Escalante
    The document outlines supplier related costs from two suppliers, FastTrack Engines and Exon Corporation. FastTrack had higher costs from inspection, rework, and warranty work, resulting in a total supplier related cost of $12.8 million and cost per unit of $32.04. Exon had lower costs across all categories, with a total of $2.6 million and cost per unit of $7.53.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 1

    MURKOFF INDUSTRIES

    Supplier Related Costs

    I. Activity Data Activity Cost


    Inspecting Components (sampling only) $ 450,000.00
    Reworking products (due to failed component) $ 8,200,000.00
    Warranty work (due to failed component) $ 6,800,000.00

    II. Supplier Data


    FastTrack Engines Exon Corporation
    Unit Purchase Price $ 1,600.00 $ 1,620.00
    Units purchased 400,000 350,000
    Sampling hours 900 600
    Rework Hours 4800 1200
    Warranty Hours 2200 300

    FastTrack Engines Exon Corporation


    Supplier Related Cost
    Inspection $ 270,000.00 $ 180,000.00
    Rework 6,560,000.00 1,640,000.00
    Warranty 5,984,000.00 816,000.00
    TOTAL $ 12,814,000.00 $ 2,636,000.00
    Units Purchased 400,000 350,000
    Supplier Related Cost per unit $ 32.04 $ 7.53
    Purchase Price 1,600.00 1,620.00
    Total Cost per unit $ 1,632.04 $ 1,627.53

    You might also like