Dust Buster’s Inc. manufactures two types of small hand-operated vacuum cleaners. Dust Busters is concerned about quality issues and has compiled the following information for the past year associated with the two vacuums.
| Heavy Duty | Regular | Activity Costs |
Units produced | 160,000 | 320,000 |
|
Warranty work (units) | 1,200 | 620 | $118,300 |
Recalled units | 1,600 | 450 | 112,750 |
Reworked units | 1,900 | 520 | 55,660 |
Inspection hrs. (incoming materials) | 1,530 | 680 | 30,940 |
Inspection hrs. (completed units) | 1.720 | 820 | 40,640 |
Quality training hrs | 110 | 100 | 31,500 |
Total Activity Costs |
|
| $389,790 |
Find the quality cost per unit for each product. (Round your answer to two decimal places.) Which product has higher quality costs? How might a manager use this quality information to make decisions (e.g., about the production process or about suppliers) related to the value chain?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.