Question

Check my work In response to intensive foreign competition, the management of Florex Company has attempted over the past year
Required: 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thous
1 Amount (in thousands) Percent of Percent of Amount (in thousands) Sales Sales Prevention costs: Total prevention costs Appr
0 0
Add a comment Improve this question Transcribed image text
Answer #1
Last Year % of sales This year % of sales
Prevention cost
Quality Engineering 360 0.0048 600 0.008
Statistical Process Control 0 0 300 0.004
System Development 660 0.0088 750 0.01
Total Prevention Cost 1020 0.0136 1650 0.022
Appraisal Cost
Inspection 840 0.0112 870 0.0116
Depreciation of Test Equipment 510 0.0068 300 0.004
Supplies used in Testing 60 0.0008 30 0.0004
Product Testing 990 0.0132 1350 0.018
Total Appraisal Cost 2400 0.032 2550 0.034
Internal failure costs
Rework labor 1230 0.0164 1890 0.0252
Net cost of scrap 660 0.0088 1230 0.0164
Disposal of defective products 810 0.0108 930 0.0124
Total internal failure costs 2700 0.036 4050 0.054
External failure costs
Cost of field servicing 1650 0.022 900 0.012
Warranty repairs 3000 0.04 1200 0.016
Product recalls 2400 0.032 750 0.01
Total external failure costs 7050 0.094 2850 0.038
Total quality cost 13170 11100
Add a comment
Know the answer?
Add Answer to:
Check my work In response to intensive foreign competition, the management of Florex Company has attempted...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • In response to intensive foreign competition, the management of Florex Company has attempted over the past...

    In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Inspection Quality engineering Depreciation of test equipment...

  • In response to intensive foreign competition, the management of Florex Company has attempted over the past...

    In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Sales have been flat over the past...

  • In response to Intensive foreign competition, the management of Florex Company has attempted over the past...

    In response to Intensive foreign competition, the management of Florex Company has attempted over the past year to Improve the quality of its products. A statistical process control system has been Installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below. Inspection Quality engineering Depreciation of test equipment...

  • In response to intensive foreign competition, the management of Florex Company has attempted over the past...

    In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below. Year Costs in thousands) Last This Year...

  • In response to intensive foreign competition, the management of Florex Company has attempted over the past...

    In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years, Costs relating to quality and quality control over the last two years are given below: Inspection Quality engineering Depreciation of test equipment...

  • Thank you! In response to intensive foreign competition, the management of Florex Company has attempted over...

    Thank you! In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below. Year Costs in thousands) Last...

  • Problem 1A-4 Quality Cost Report [LO1-7, LO1-8] In response to intensive foreign competition, the management of...

    Problem 1A-4 Quality Cost Report [LO1-7, LO1-8] In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below:...

  • If you can't see right click and open in new tab. I really don't understand how...

    If you can't see right click and open in new tab. I really don't understand how to find Percentage of sales. In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amoun of warranty and other field costs, which have been trending upward over the past several years. Costs...

  • Check my work Mercury, Inc., produces cell phones at its plant in Texas. In recent years,...

    Check my work Mercury, Inc., produces cell phones at its plant in Texas. In recent years, the company's market share has been eroded by stiff competition from overseas. Price and product quality are the two key areas in which companies compete in this market. A year ago, the company's cell phones had been ranked low in product quality in a consumer survey. Shocked by this result, Jorge Gomez, Mercury's president, initiated an intense effort to improve product quality. Gomez set...

  • Please show work. Thanks. Mercury, Inc., produces cell phones at its plant in Texas. In recent...

    Please show work. Thanks. Mercury, Inc., produces cell phones at its plant in Texas. In recent years, the company's market share has been eroded by stiff competition from overseas. Price and product quality are the two key areas in which companies compete in this market. A year ago, the company's cell phones had been ranked low in product quality in a consumer survey. Shocked by this result, Jorge Gomez, Mercury's president, initiated an intense effort to improve product quality. Gomez...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT