Homework Answers
| Quality cost classification | ||||
| Prevention cost | Appraisal cost | Internal failure cost | External failure cost | |
| Quality cost | Warranty Expenses | Inspection costs | Scrap and rework | Product returns due to defects |
| Amount ($ ) | 19000 | 14000 | 7200 | 6000 |
| Sales Revenue ($ ) | 250000 | 250000 | 250000 | 250000 |
| % of quality cost on sales revenue (%) | 7.60% | 5.60% | 2.88% | 2.40% |
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Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of...
Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of...
Charles Berkle is the manager of Nogain Manufacturing and is
interested in doing a cost of quality analysis. The following cost
and revenue data are available for the most recent year ended
December 31:
Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31 250,000 Sales revenue 140,000 Cost of goods solo Warranty expense Inspection costs...
Listed below are eight components of the total cost of quality. In the spaceprovided identify each...
Listed below are eight components of the total cost of quality. In the spaceprovided identify each as a cost of prevention, appraisal, internal failure, or extemal failure 1. Product design 2. Product returns due to defects 3. Inspection of raw materials shipments 4. Employee training 5. Rework of defective units prior to shipment 6. Estimated lost sales due to poor quality 7. Warranty expense 8. Inspection of finished goods 9. Scrap
Required A Required B Calculate the ratio of the prevention, appraisal, internal failure, and external failure...
Required A Required B Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April. (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).) March April Prevention Appraisal Internal failure External failure % % % % % % % % The following represents the financial information for Domingo Corporation for two months. March $515,000 April $440,000 Sales revenue Costs Process inspection Scrap Quality training Warranty repairs Product testing...
The following represents the financial information for Domingo Corporation for two months. March April $360,000 Sales...
The following represents the financial information for Domingo Corporation for two months. March April $360,000 Sales revenue $540,000 Costs $ 1,550 1,820 Process inspection 1,940 1,870 13,300 Scrap Quality training Warranty repairs Product testing equipment Customer complaints 20,600 4,300 6,700 2,500 16,000 15,100 6,400 9,800 4,800 7,500 3,100 20,000 9,400 4,700 Rework Preventive maintenance Materials inspection Field testing 13,500 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention,...
The following represents the financial information for Domingo Corporation for two months. March April Sales revenue...
The following represents the financial information for Domingo Corporation for two months. March April Sales revenue $ 540,000 $ 440,000 Costs Process inspection $ 1,800 $ 1,890 Scrap 1,840 1,860 Quality training 20,700 13,400 Warranty repairs 4,300 4,700 Product testing equipment 7,300 6,700 Customer complaints 3,000 3,500 Rework 17,000 19,000 Preventive maintenance 11,800 9,300 Materials inspection 5,900 5,200 Field testing 10,000 13,800 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio...
The following represents the financial information for Domingo Corporation for two months. March $498,000 April $456,...
The following represents the financial information for Domingo Corporation for two months. March $498,000 April $456,000 $ $ Sales revenue Costs Process inspection Scrap Quality training Warranty repairs Product testing equipment Customer complaints Rework Preventive maintenance Materials inspection Field testing 3,050 2,200 21,200 6,400 7,700 3,850 17,700 14,900 7,900 10,800 3,280 2,280 14,400 6,900 7,700 4,450 22,000 10,900 6,200 13,800 Required: Construct a cost of quality report for March and April. (Input all amounts as positive values. Round percentage answers...
Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165...
Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $60,000, whereas no. 172 typically sells for approximately $55,000. The company is very concerned about quality and has provided the following information: No. 165 No. 172 Number of machines produced and sold 80 TO Warranty costs: Average repair cost per unit $1,200 $400 Percentage of units needing repair 70% 10% Reliability engineering...
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $49,500 Training of machine operators...
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $49,500 Training of machine operators 27,400 Processing returned products 18,100 Scrap processing (disposal) 25,300 Rework 7,900 Preventative maintenance 27,100 Product design 41,100 Warranty work 9,100 Finished goods inspection 23,300 From the above schedule of activity costs, determine the appraisal costs. Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $49,200 Training of machine operators 28,200 Processing returned products 18,900 Scrap processing (disposal) 26,600 Rework 6,700 Preventative maintenance...
Number of units manufactured and sold Selling price per unit Variable manufacturing and selling costs per...
Number of units manufactured and sold Selling price per unit Variable manufacturing and selling costs per unit Hours spent by engineers improving design. Testing and inspection hours per unit Percentage of units reworked in the plant after inspection Average variable rework costs per refrigerator 3,200 units 1,250 750 1,500 0.5 hours 7% 520 Percentage of units reworked in the plant after inspection Average variable rework costs per refrigerator. Percentage of units repaired under warranty at customers' homes Average variable repair...
Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. Prevention costs: Prototype inspection $ 380,000 Vendor certificati...
Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. Prevention costs: Prototype inspection $ 380,000 Vendor certification 760,000 Total prevention costs $ 1,140,000 Appraisal costs: Process acceptance $ 395,000 Test labor 440,000 Total Appraisal costs $ 835,000 Internal failure costs: Retesting $ 227,500 Rework 455,000 Total internal failure costs $ 682,500 External failure costs: Recalls $ 232,000 Product liability 462,500 Total external failure costs $ 694,500 Total quality costs $3,352,000...
Charles Berkle is the manager of Nogain Manufacturing and is
interested in doing a cost of quality analysis. The following cost
and revenue data are available for the most recent year ended
December 31:
Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31 250,000 Sales revenue 140,000 Cost of goods solo Warranty expense Inspection costs...
Listed below are eight components of the total cost of quality. In the spaceprovided identify each as a cost of prevention, appraisal, internal failure, or extemal failure 1. Product design 2. Product returns due to defects 3. Inspection of raw materials shipments 4. Employee training 5. Rework of defective units prior to shipment 6. Estimated lost sales due to poor quality 7. Warranty expense 8. Inspection of finished goods 9. Scrap
Required A Required B Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April. (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).) March April Prevention Appraisal Internal failure External failure % % % % % % % % The following represents the financial information for Domingo Corporation for two months. March $515,000 April $440,000 Sales revenue Costs Process inspection Scrap Quality training Warranty repairs Product testing...
The following represents the financial information for Domingo Corporation for two months. March April $360,000 Sales revenue $540,000 Costs $ 1,550 1,820 Process inspection 1,940 1,870 13,300 Scrap Quality training Warranty repairs Product testing equipment Customer complaints 20,600 4,300 6,700 2,500 16,000 15,100 6,400 9,800 4,800 7,500 3,100 20,000 9,400 4,700 Rework Preventive maintenance Materials inspection Field testing 13,500 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention,...
The following represents the financial information for Domingo Corporation for two months. March $498,000 April $456,000 $ $ Sales revenue Costs Process inspection Scrap Quality training Warranty repairs Product testing equipment Customer complaints Rework Preventive maintenance Materials inspection Field testing 3,050 2,200 21,200 6,400 7,700 3,850 17,700 14,900 7,900 10,800 3,280 2,280 14,400 6,900 7,700 4,450 22,000 10,900 6,200 13,800 Required: Construct a cost of quality report for March and April. (Input all amounts as positive values. Round percentage answers...
Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $60,000, whereas no. 172 typically sells for approximately $55,000. The company is very concerned about quality and has provided the following information: No. 165 No. 172 Number of machines produced and sold 80 TO Warranty costs: Average repair cost per unit $1,200 $400 Percentage of units needing repair 70% 10% Reliability engineering...
Number of units manufactured and sold Selling price per unit Variable manufacturing and selling costs per unit Hours spent by engineers improving design. Testing and inspection hours per unit Percentage of units reworked in the plant after inspection Average variable rework costs per refrigerator 3,200 units 1,250 750 1,500 0.5 hours 7% 520 Percentage of units reworked in the plant after inspection Average variable rework costs per refrigerator. Percentage of units repaired under warranty at customers' homes Average variable repair...
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