Answer the last two requirments 3 and 4 Problem QuestionsP15.33 Supplier costs analysis; supplier performance measures; supplierselection: builderJacaranda Builders is undertaking an analysis of supplier costs in order to evaluate therelative costs and performance of each supplier. They have isolated a range of activitiesthat are consumed by suppliers, identified activity drivers, and estimated the cost per unitof activity driver for last year:ActivityDowntime due to poor quality materialOrder materialReceive orderInspect orderReturn material to supplierPay supplierDispute invoiced amountCost per unit of activity driver$200 per unit reworked$250 per order$180 per delivery$300 per delivery$220 per return$190 per invoice$560 per disputeThe three major suppliers to the company consumed the following numbers of activities:ActivityPossum TimberWombatEmu InsulationPlumbingUnits reworked102.Order material404830Receive orderInspect orderReturn material to supplierPay supplierDispute invoiced amount4060384060384151248122.13In addition, a supplier relationship manager (salary $90,000) was employed. It isestimated that 60% of his time was spent serving Wombat Plumbing, and 40% on theother two suppliers.The cost of material purchased from each supplier was as follows:Possum TimberWombat PlumbingEmu Insulation$120,000$150,000$ 74,000Required3. Discuss the relative performance of each supplier.4. Do you have any recommendations on supplier selection for the management ofJacaranda Builders?

The method or technique of costing which is used in those manufacturing units which are continuously…

Jacaranda Builders is undertaking an analysis of supplier costs in order to evaluate the relative costs and performance of each supplier. They have isolated a range of activities that are consumed by suppliers, identified activity drivers, and estimated the cost per unit of activity driver for last year: Activity Downtime due to poor quality material Order material Receive order Inspect order Return material to supplier Pay supplier Dispute invoiced amount Cost per unit of activity driver $200 per unit reworked $250 per order $180 per delivery $300 per delivery $220 per return $190 per invoice $560 per dispute

Jacaranda Builders is undertaking an analysis of supplier costs in order to evaluate the relative costs and performance of each supplier. They have isolated a range of activities that are consumed by suppliers, identified activity drivers, and estimated the cost per unit of activity driver for last year: Activity Downtime due to poor quality material Order material Receive order Inspect order Return material to supplier Pay supplier Dispute invoiced amount Cost per unit of activity driver $200 per unit reworked $250 per order $180 per delivery $300 per delivery $220 per return $190 per invoice $560 per dispute

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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