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Murkoff Industries

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.

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Nicolyn Rae Escalante
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35 views1 page

Murkoff Industries

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.

Uploaded by

Nicolyn Rae Escalante
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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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

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