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28 Sep 2019
Cost of Quality Report
Meagher Solutions Inc. manufactures memory chips for personalcomputers. An activity analysis was conducted, and the followingactivity costs were identified with the manufacture and sale ofmemory chips:
a. Identify the cost of quality classificationfor each activity.
Quality Activities Activity Cost Quality Cost Classification Correct shipment errors $150,000 Disposing of scrap 95,000 Emergency equipment maintenance 125,000 Employee training 50,000 Final inspection 80,000 Inspecting incoming materials 60,000 Preventive equipment maintenance 40,000 Processing customer returns 90,000 Scrap reporting 45,000 Supplier development 15,000 Warranty claims 250,000 Total $1,000,000
b. Prepare a cost of quality report. Assumethat the sales for the period were $4,000,000. If required, roundpercents to one decimal place.
Meagher Solutions Inc. Costof Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $ % % Appraisal % % Internal failure % % External failure % % Total $ % %
c. The category with the fewest number ofquality activities is . Nearly fifty percent of the qualityactivity costs are . The highest single cost is warranty claims,which is a(n) . Disposing of scrap, emergency equipmentmaintenance, and scrap reporting are all .
Cost of Quality Report
Meagher Solutions Inc. manufactures memory chips for personalcomputers. An activity analysis was conducted, and the followingactivity costs were identified with the manufacture and sale ofmemory chips:
a. Identify the cost of quality classificationfor each activity.
Quality Activities | Activity Cost | Quality Cost Classification | |||
Correct shipment errors | $150,000 | ||||
Disposing of scrap | 95,000 | ||||
Emergency equipment maintenance | 125,000 | ||||
Employee training | 50,000 | ||||
Final inspection | 80,000 | ||||
Inspecting incoming materials | 60,000 | ||||
Preventive equipment maintenance | 40,000 | ||||
Processing customer returns | 90,000 | ||||
Scrap reporting | 45,000 | ||||
Supplier development | 15,000 | ||||
Warranty claims | 250,000 | ||||
Total | $1,000,000 |
b. Prepare a cost of quality report. Assumethat the sales for the period were $4,000,000. If required, roundpercents to one decimal place.
Meagher Solutions Inc. | |||
Costof Quality Report | |||
Quality Cost Classification | Quality Cost | Percent of Total Quality Cost | Percent of Total Sales |
Prevention | $ | % | % |
Appraisal | % | % | |
Internal failure | % | % | |
External failure | % | % | |
Total | $ | % | % |
c. The category with the fewest number ofquality activities is . Nearly fifty percent of the qualityactivity costs are . The highest single cost is warranty claims,which is a(n) . Disposing of scrap, emergency equipmentmaintenance, and scrap reporting are all .
Hubert KochLv2
28 Sep 2019