Question

Gamma Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year: (Click the icon to view the information.) Read the requirements Requirement 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. (Round the percentage to the one tenth of a percent, X.X%. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Gamma Cost of Quality Report Costs Total Costs of Percentage of Total Costs of Quality (Rounded) Incurred Quality Prevention Costs: Design engineering Total prevention costs % Appraisal Costs: Total appraisal costs % Internal Failure Costs: Choose from any list or enter any number in the input fields and then click Check Answer.

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Answer 1

Cost of Quality	Total cost of quality	% to TC of quality
Prevention costs :
Design engineer LC(1300*100)	130,000	16.87%
Appraisal costs:
Testing and inspection cost(2500*1.5*20)	75,000	9.73%
Internal failure cost:
Rework cost (2500*7%*430)	75,250	9.76%
External failure costs :
Warranty (2500*6%*570)	85,500	11.09%
Loss of contribution due to loss of sales 450*(1600-700)	405,000	52.55%
Total quality cost	770750	100%