Question

Please explain how you get the numbers in shaded boxes. Thanks.

Osborn, Inc., produces cell phone equipment. Tina Merryfield, Osbom's president, implemented a quality-improvement program that has now been in operation for 2 years. The cost report shown here has recently been issued. (Click the icon to view the cost repart.) Read the requirements. i Data Table Semi-Annual COQ Report, Osborn, Inc. (in thousands) 6/30/2016 12/31/2018 6/30/2017 12/31/2017 Prevention costs Machine maintenance Supplier training $ 480 $ 360 S 25 480 $ 92 199 48 70 197 Design reviews Requirement 1. For each period, calculate the ratio of Bach COQ category to revenues and to total quality costs. Begin by calculating the ratio of cach COQ category to revenues and to total quality costs for 6/30/2018, then 12/31/2016. (Round your answers to the nearest porcentage due to rounding.) 8/30/2016 (in thousands) 12/31/2016 (in thousands) % of % of total % of % of total Actual revenues quality costs Actual revenues quality costs Prevention costs Machine maintenance $ 480 S 480 Supplier training 25 Design reviews 70 199 Total prevention costs _ 5757 27' 770 % 36% Appraisal costs Incoming inspections Final testing Total appraisal costs 444 5% 21% 460 SX 21% Intemal failure costs Rework Total prevention onsts 575 770 623 Appraisal costs Incoming inspections 103 119 Final testing 341 241 119 444 Total appre sal costs 480 383 Internal failure costs Rework 229 133 201 173 S 362 Scrap Total intal failure External falure costs Warranty repairs Customer relumns 362 4% 17% 318 39% 15% 162 Serap Total intemal failure costs External failure coats Warranty repairs Customer returns Tolal external failure costs 584 748 162 90 521 611 2,159 $ 90 79 266 345 1,590 S Total external failure costs 521 746 0 2.127 $ $ Total quality costs Total revenues 2,127 $ 8,280 $ 1,184 9,060 20% 9,120 $ 9,270 $ $ 26 Total quality costs Tatal revenues 35 % - 17 % $ 2.159 24% S 9,120 $ 200 Print [Done] This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers.

Answer 1

B 1 Actual 480 C D E F G 6/30/2016 12/31/2016 % of revenues % of total costs Actual % of revenues % of total costs 6% 23% 480 5% 22% 1% 92 4% 3% 198 2% 9% 27% 770 36% 25 70 575 0.3% 1% 7% 5% 119 103 341 444 16% 341 460 6% 16% 21% 21% 2 Particulars 3 maintenance 4 Training 5 Design reviews 6 Total prevetion cost 7 8 Inspections 9 Testing 10 appraisal cost 11 12 rework 13 scarp 14 internal failure cost 15 16 warranty repairs 17 Customer Returns 18 Total External failure cost 19 20 Total Cost 21 Revenues 22 11% 6% 17% 117 9% 5% 15% 318 162 8% 27% 35% 584 746 521 6% 4% 24% 28% 611 7% 100% 100% 2127 8280 26% 100% 2159 9120 24% 100%

C D E 6/30/2016 % of revenues % of total costs Actual =+B3/$B$21 =+B3/$B$20 480 =+B4/$B$21 =+B4/$B$20 92 =+B5/$B$21 =+B5/$B$20 198 =+B6/$B$21 =+B6/$B$20 =SUM(E3:E5) F 12/31/2016 % of revenues % of total costs =+E3/$E$21 =+E3/$E$20 =+E4/$E$21 =+E4/$E$20 =+E5/$E$21 =+E5/$E$20 =+E6/$E$21 =+E6/$E$20 70 =+B8/$B$21 =+B9/$B$21 =+B10/$B$21 =+B8/$B$20 =+B9/$B$20 =+B10/$B$20 119 341 -SUM(E8:59) =+E8/$E$21 =+E9/$E$21 =+E10/$E$21 A B 1 2 Particulars Actual 3 maintenance 480 4 Training 25 5 Design reviews 6 Total prevetion cost =SUM(B3:35) 7 8 Inspections 103 9 Testing 341 10 appraisal cost =SUM(B8:39) 11 12 rework 229 13 scarp 133 14 internal failure cost =SUM(B12:313) 15 16 warranty repairs 162 17 Customer Returns 584 18 Total External failure cost =SUM(B16:317) 19 20 Total Cost =+B6+B10+B14+B18 21 Revenues 8280 =+E8/$E$20 =+E9/$E$20 -+E10/$E$20 =+B12/$B$21 =+B13/$B$21 =+B14/$B$21 =+B12/$B$20 =+B13/$B$20 =+B14/$B$20 201 117 =SUM(E12:E13) =+E12/$E$21 =+E13/$E$21 -+E14/$E$21 =+E12/$E$20 =+E13/$E$20 -+E14/$E$20 =+B16/$B$21 =+B17/$B$21 =+B18/$B$21 =+B16/$B$20 =+B17/$B$20 =+B18/$B$20 90 521 =SUM(E16:E17) =+E16/$E$21 =+E17/$E$21 =+E18/$E$21 =+E16/$E$20 =+E17/$E$20 =+E18/$E$20 =+B20/$B$20 =+E20/$E$20 =+B20/$B$21 =+B21/$B$21 =+E6+E10+E14+E18 =+E20/$E$21 9120 =+E21/$E$21 22